Mon, 18 Nov 2024 | ADMINISTRATION
A Scottish whisky label maker has been bought out of administration saving 16 jobs.
Renfrew-based Spirit Label Solutions, which produces labels for whisky and spirits bottles, appointed Michelle Elliot and Callum Carmichael of FRP Advisory as joint administrators on November 8.
The company was founded in February 2023 to take advantage of a growing market for whisky labelling. In late 2023 it began production at a £5 million purpose-built 1,400 sqm factory at Glasgow Airport.
However, the company fell into difficulties following an almost 10 per cent drop in Scotch whisky exports in 2023. It was faced with unsustainable cash flow pressure stemming from increased operational costs and a downturn in the global whisky industry.
Following an accelerated sales process, a deal to buy the company as a going concern has been agreed with Spirit Labels Ltd, founded by local businessman Craig Hyslop, for an undisclosed sum.
Spirit Labels has bought all of the company’s unencumbered fixed assets, including its state-of-the-art digital laser printers, stock and intellectual property. The move will see all 16 jobs transferred to the new owner through TUPE regulations.
Elliot, partner at FRP, said: “Spirit Label Solutions Limited had quickly acquired a strong reputation within the Scottish whisky industry offering innovative printing solutions to a wide range of customers. We are pleased to have secured a sale of the business to Spirit Labels Ltd and wish the new owners every success in taking the business forward. We are particularly encouraged to have secured the transfer of the workforce and would extend our thanks to everyone involved for their support throughout the process.”
Hyslop of Spirit Labels said that the new ownership team had injected significant working capital into the business putting it in a very strong financial position.
“Spirit Labels is a fantastic company that just needs time to develop and grow, and the restructure allows for this to happen,” he said. “I look forward to working with the senior team and indeed all of our valued employees, to take Spirit Labels forward and vitally, to support and provide the very best service to our valued customer base.”
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