An interim examiner has been appointed to the Killarney Brewing and Distilling Company in an effort to secure the company’s future.
The company opened a €24 million brewery and visitor centre in Fossa three years ago.
That was in addition to its taproom on Muckross Road which opened ten years ago, while it also produces a selection of popular beers.
In a statement, the company cited geopolitical uncertainty and the fact a prospective US-based partner recently pulled out of a deal, among the reasons examinership was necessary.
A company can apply to the court for the appointment of an examiner, which provides that company with protection from its creditors, with the aim of restructuring the company and securing investment.
Following a petition by the Killarney Brewing and Distilling Company, James Anderson, partner in Deloitte Ireland, was appointed as interim examiner yesterday evening.
The company says it’s endured unprecedented challenges during and following the COVID-19 pandemic, which have collectively placed significant pressure on the business, negatively impacting revenue and profitability.
These challenges, it says, included surging raw material costs, significant supply chain disruptions, delays in opening the Fossa distillery, whiskey inventory supply gluts, and broader geopolitical uncertainties.
Killarney Brewing and Distilling Company said earlier this year, it reached a preliminary agreement to merge with a US-based strategic partner, but unfortunately, this partner recently made the decision not to proceed with the transaction.
The directors of the company say the examinership process presents the most viable path to secure the company’s future by attracting new investment from experienced industry partners.
They believe this decision will safeguard employment, stabilise operations in the medium to long-term and secure a sustainable future.
The company said it remains incredibly grateful for the continued support of employees, customers, partners, and shareholders, while it committed to working closely with the examiner Mr Anderson.
Mr Anderson said he’s committed to working with the company and all stakeholders to achieve a successful outcome.
