Durham Distillery shuts after town dispute
Ontario-based Durham Distillery has ceased operations after its landlord, the town of Ajax, issued a notice to vacate the premises.
In a statement on its website, Durham Distillery said the town had provided it with 30 days’ notice in January 2026 to leave the premises, following the expiration of its three-year lease in December 2024.
As a federally bonded distillery operating under strict Canada Revenue Agency (CRA) and excise regulations, relocation involves far more than a standard commercial move, the distillery noted.
The spirits producer explained the move would need “extensive regulatory approvals, specialised production infrastructure, coordinated oversight, controlled transfer of bonded inventory, and significant advance planning”.
According to the company, the timeline provided by the town made regulatory compliance and operational continuity unfeasible for the distillery.
Despite discussions with Ajax’s representatives – including Ottawa-based legal counsel – a solution was not reached.
In addition, the town has also taken possession of the distillery’s alcohol inventory, which has made it challenging for the company to resume operations at another location.
“This is not just the loss of a facility,” said co-founder and head distiller Chris Ferg. “It impacts local jobs, our hospitality partners, the charities we support, and the many residents who have celebrated milestones within our walls.”
In a statement, the town of Ajax said: “The town is both financially and ethically responsible to ensure our facilities are used in the best interests of Ajax taxpayers.
“In 2022, the town began working with Durham Distillery to support the establishment of a fully operational distillery at 25 Mill Street to enhance the vibrancy of the Pickering Village.
“While this vision did not materialise, when the three-year lease expired in December 2024, the town permitted Durham Distillery to continue operating on a month-to-month basis for the entirety of 2025.
“The tenant was made aware during this period that the lease would not be extended, and on 5 January 2026, they were issued a formal legal notice informing them of the town’s intention to reassess the facility’s use.
“As communicated, the tenant is welcome to make arrangements with staff to retrieve business equipment and products from the facility at their convenience.”
Ferg founded Durham Distillery in 2019 after stepping away from his corporate career and gaining a licence to operate a legal distillery. The company produced whisky, gin, vodka and rum.
The closure notice from the distillery said customers who purchased tickets for upcoming Cocktail Experience events will be contacted for refunds in the coming days.
“While operations have ceased for now, the team is actively evaluating options for the future and remains hopeful that Durham Distillery’s award-winning spirits will once again be produced and served within the region,” the statement from Durham Distillery said.
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