The impact of “high tariffs” and the Covid-19 pandemic caused “significant and sustained challenges” for Killarney Brewing and Distilling (KBD), the company said after entering liquidation on Monday.
In a statement, KBD said that “despite the best efforts of all involved” the examinership process which was in place over the company since mid-April was unsuccessful.
The company said that, as with many other drinks manufacturers, KBD faced “significant and sustained challenges” over the past few years as a result of the “lasting effects of the Covid-19 pandemic”.
Founded by local businessmen Tim O’Donoghue and Paul Sheahan in 2013, the company had 64 employees in 2022. Mr Justice Michael Quinn of the High Court appointed James Anderson of Deloitte as liquidator at a hearing on Monday.
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KBD said the pandemic led to delays in opening its distillery in Fossa and also caused “global supply chain disruptions, rising input costs, and ongoing geopolitical and trading pressures.”
“More recently, high tariffs on Irish whiskey exports to the US and wider economic uncertainty have further impacted the business.”
As reported previously, the company had reached a preliminary agreement to merge with a US-based entity but the company pulled out of the deal.
“In response, KBD entered the examinership process in the hope of securing new investment to protect jobs and stabilise operations for the long term,” the statement reads, noting that despite the “tireless efforts” under examinership, an investor was unable to be secured in time.
“We remain proud of what we’ve built together and the craft, care, and creativity that defined our journey.”
