An award-winning Dundee gin firm has started a liquidation process due to “cash flow problems”.
Verdant Spirits won the Scottish Gin of the Year in 2017 and subsequently won a deal to supply the House of Commons.
Based at Edward Street Mill in Forest Park Place, the company had plans to create a gin school and visitor centre.
The company has sought external investment for the past six months, but has been able to secure a cash injection.
Verdant Spirits liquidation
Founder and managing director Andrew Mackenzie described the decision as a “sad day”. He personally stands to lose £200,000 on the venture.
He said Covid had badly impacted the business, known for its dry gin.
“We built up the business to be in good shape in 2019 and at that time we were seeking investment to take us up to the next level and expand,” he said.
“We’d been named Scottish Gin of the Year, we had the House of Commons contract and some good trading figures under our belt.
“The visitor centre and gin school would have taken us to the next level. We were close to securing investment of around £250,000 and then along came Covid.
“We struggled through that period, mainly by switching to producing hand sanitiser, but that market dried up.
“Verdant had positioned ourselves as a premium brand so we weren’t in supermarkets to benefit from increased sales there. Our independents were shut, as were the pubs and trade.”
The owner said the impact of Brexit meant the firm struggled to source bottles.
Not only did the price increase, suppliers would only ship when other companies placed orders to make it worthwhile.
Mr Mackenzie added: “They wouldn’t accept an order without payment for you to be put on the list without a confirmed date of when it would arrive.
“The glass situation has cleared up but now we just don’t have the cash to pay in advance for this.
“It’s a real shame as we currently have £36,000 of unfulfilled orders.”
‘Sad day’ to liquidate business
Verdant laid off one member of staff in November as part of a cost-cutting process as Mr Mackenzie continued to seek investment.
The company previously ran a crowdfunding campaign to fund the development of the mill building and visitor centre plans but this did not meet its target.
Henderson Loggie has been appointed as liquidator.
“There will be an auction, probably at the distillery, of the equipment,” Mr Mackenzie continued.
“Then that money will go towards paying creditors and the business will just be wound up. Debts are in the region of £25,000.
“I’ve spent the last six months going down every possible avenue to try to get this going.
“It’s a terrific product in a great site but we just don’t have the cash to get through.
“It’s a sad day and of course losing £200,000 is something nobody wants to do.
“It will be a few weeks before the liquidation becomes firm so if anybody out there wants to get involved, please get in contact.”
