Killarney Brewing and Distilling staff told operations to cease
The Kerry-based company, which has been in examinership, informed workers on Thursday, according to a source familiar with the business.
The case tied to the firm's examinership is expected before the High Court on Friday. A spokesman for the examiner declined to comment ahead of the court appearance.
More than 50 jobs were at stake when the 'asset rich' but cash poor business entered examinership in April.
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Ms Justice Marguerite Bolger originally appointed Deloitte's James Anderson as interim examiner on April 17, and later as examiner, in the aftermath of a failed bid to secure US investment. The examinership, which gave the business court protection for 70 days, was later extended.
Barrister Declan Murphy, who appeared for the company in April, told the court that the company was currently asset rich but cash-flow insolvent and required the protection of the court from its creditors and the appointment of an interim examiner. He said the parent company owned seven other companies and boasted the largest independent brewery and visitor centre in Ireland.
In a statement at the time, KBD said it had 'endured unprecedented challenges during and following the COVID-19 pandemic' as a result of 'surging raw material costs, significant supply chain disruptions, delays in opening the Fossa distillery, whiskey inventory supply gluts, and broader geopolitical uncertainties'.
'Collectively, these issues have placed significant pressure on the business and negatively impacted both revenue and profitability,' the brewery and distillery said.
'Earlier this year, KBD reached a preliminary agreement to merge with a US-based strategic partner. Unfortunately, that partner recently made the decision not to proceed with the transaction.'
The brewery said examinership was the 'most viable path' for the company, in order to 'safeguard employment, stabilise operations in the medium to long term and secure a sustainable future'.
Founded by local businessmen Tim O'Donoghue, Paul Sheahan in 2013, the parent company of the group has not filed accounts since 2023. In its more recent filings with the Companies Registration Office, the company reported a turnover of more than €2 million for 2022. The business lost €1.61 million in 2022 and had accumulated losses of €4.15 million.
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