Receivers have been appointed to Waterford Whisky, as financial constraints have forced the company to stop production.
While farmers have been paid for grain purchased so far, Waterford Whisky said that it will not be in a position to buy any more.
“We’d love to be in a position where sales are high and can continue to buy grain. We may have to take a break from production for a year or two but a lot of the industry is in similar situations where they’re cutting on production,” head brewer Neil Conway told the Irish Farmers Journal.
“Unfortunately, that grain is sitting in Dalton’s ready to be malted next year but we weren’t financed. The farmers have been paid. Minch Malt have been very good that barley will go back into the distilling chain. What will happen with the specialty [grain] we’re hoping someone will come in and we can buy it next year.”
Waterford Whisky has stated that Mark Degnan and Daryll McKenna from the financial advisory firm Interpath were appointed as joint receivers on 27 November 2024.
The appointment was made by the company's main lender HSBC which was called in to create a plan for the business.
Co Kildare farmer Trevor Harris, who has been supplying the Waterford distillery with organic and, subsequently, biodynamic barley since its early days of business, says that it was a wonderful company to work with who really understood the importance of their raw ingredients.
“I was really saddened by the news,” he says. “They were always such strong advocates for biodynamic farming methods and very publicly supportive. It was great to have that as a biodynamic farmer, but equally to have someone who put their money where their mouth is – they invested heavily in buying biodynamic grain. Hopefully it’s not the end.
“I also found them really great to deal with as a company. They always listened to the concerns of farmers and were always very positive. It’s a sad day.”
Receivership process
A receivership is a process by which a court-appointed solution to help avoid bankruptcy and return to profitability.
In the lead-up to the announcement that Waterford Whisky distillery would be entering into a receivership, the company was given some time to re-finance as it is understood its main financing body, HSBC, wasn't willing to re-finance. The receivership occurred because this time ran out.
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