The Scottish firm, Whisky Merchant Trading Limited, entered into liquidation due to financial difficulties
The whisky company has hundreds of thousands of debts(Image: Getty)
A Scottish whisky company has collapsed into liquidation after accumulating debts running into thousands of pounds.
The Edinburgh-based firm, Whisky Merchant Trading Limited, which operated brands including Cask 88 and Braeburn Whisky, entered administration owing to serious financial difficulties.
Stephen Hunt, of Griffins, has been appointed as liquidator.
The UK whisky company has plunged into liquidation (Image: Getty)
The collapse left “thousands of global customers uncertain of their asset ownership” after the Edinburgh-based company had previously raised roughly £80 million in investment funds.
However, customers will not be left out of pocket as administrators confirmed the business was rescued following the sale of key assets to Edinburgh Cask Management (Resolution) Limited.
The new owners are now working to reunite investors with their casks.
Griffins said: “As part of this sale agreement, ECMR has committed to addressing the issues faced by customers who may have purchased casks from the companies but have not yet been located.
“They will replace these casks and offer trade-out options for better stock.
“Each offer will be tailored to the specific circumstances of individual customers, and ECMR will provide further details in due course.
“Additionally, ECMR has agreed to take over cask management where applicable and will work with warehouse operators to resolve outstanding warehouse fees.
“Warehousekeepers will enter into agreements to facilitate the transfer of casks to their rightful owners.” The new proprietors are working to “resolve debts, transfer casks, and set up verified warehouse accounts for customers”.
Griffins added: “The company expanded rapidly gaining investors worldwide, however, the company was not able to keep up with the increasing costs and expenses.”
ECMR said: “Our focus throughout the month was on contacting all customers where casks are currently unaccounted for, ensuring every cask is properly reconciled and transferred to its rightful owner.”
Outstanding storage fees totalling £500,000 have already been settled.