Killarney Brewing & Distilling to close
Ireland’s Killarney Brewing & Distilling Company (KBD) has entered liquidation after failing to secure investment.
The distillery filed a petition seeking examinership in Ireland’s High Court on 16 April, with James Anderson of Deloitte appointed as its examiner.
However, following the conclusion of the three-month examinership, which grants court protection for a limited time, KBD was unable to find a new investor.
As such, Anderson was appointed by Ireland’s High Court as KBD’s liquidator.
“Unprecedented challenges” during the Covid-19 pandemic and its fallout – including surging costs and disruptions to the supply chain – had placed “significant pressure” on the business, a statement from the company had said after entering examinership to protect its future.
All 54 workers employed by the company have been made redundant.
US tariff disruption
A statement from the company read: “Unfortunately, despite the best efforts of all involved, the process did not result in a successful investment outcome.
“Like many in the drinks manufacturing industry, KBD has faced significant and sustained challenges in recent years, stemming from the lasting effects of the Covid-19 pandemic, delays in opening our state-of-the-art distillery in Fossa, global supply chain disruptions, rising input costs, and ongoing geopolitical and trading pressures. More recently, high tariffs on Irish whiskey exports to the US and wider economic uncertainty have further impacted the business.
“Earlier this year, the company had reached a preliminary agreement to merge with a US-based strategic partner, but the partner ultimately chose not to proceed. In response, KBD entered the examinership process in the hope of securing new investment to protect jobs and stabilise operations for the long term. Despite tireless efforts, no suitable investor was secured within the timeframe set out by the court.
“The company would like to express its sincere and heartfelt thanks to our exceptional employees, whose dedication, resilience, and passion never wavered throughout this incredibly difficult time.
“We are also deeply grateful to our shareholders and wider investment community for their support and belief in our vision, and to our loyal customers, partners, and the local community in Killarney who have stood by us at every turn.
“We remain proud of what we’ve built together and the craft, care, and creativity that defined our journey.”
A spokesperson for Anderson added: “Our priority now is to work with all stakeholders to address their interests and claims.”
KBD makes a blended Irish whiskey, as well as a range of beers and a gin. Its inaugural whiskey, produced at the site, was initially due to launch in 2028.
The company has a separate taproom in the town of Killarney, opened in 2015, and a brewery, distillery and visitor centre in Fossa, near Killarney, which opened in 2022.
Powerscourt Distillery is another fellow Irish whisky battling to stay afloat – the company filed for examinership on 30 June.
Irish whiskey makers Roe & Co, Tullamore Dew and Dublin Liberties Distillery have also put a pause on production this year.
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