Online drinks retailer Spirit.Ed falls into administration
The owner of online drinks retail and wholesale group Spirit.Ed, previously 31Dover, has fallen into administration following a period of “difficult” trading and an inability to raise new funding.
The businesses affected, DMD Operations and Vanquish Operations, owned drinks e-commerce site Spirit.Ed and ran subscription businesses The Gin Club and previously Off the Still, as well as drinks wholesalers Vanquish and OnStock.
The companies appointed Colin Hardman and Clare Lloyd, partner and associate director of Smith and Williamson as joint administrators last week.
Businesses in the group include online drinks retailer Spirit.Ed, subscription service The Gin Club (which ceased operations in March amid sourcing issues) and wholesalers OnStock and Vanquish. The group also previously operated the now-defunct subscription business Off the Still.
Joint Administrator Colin Hardman commented: Following a period of difficult trading conditions, the companies’ management had attempted to find a new strategic funder. Whilst we understand that negotiations were at a very developed stage, ultimately they were not successful.”
“The joint administrators will therefore be aiming to realise the best possible value from the business and assets, in order to maximise the return to the creditors.”
Founded as 31Dover in 2012, the company’s strong initial growth saw it announce plans in 2019 to raise more than £500,000 in a crowdfunding campaign that valued the total business at approximately £45 million. At the time, the business was registering annual revenues of around £12 million, which it was looking to grow to £30 million.
However, plans were abandoned for a potential £1 million crowdfunding after a private phase failed to reach £300,000. The company said at the time it would seek “alternative routes” of financing, but then saw its business severely hampered by COVID-19’s devastating impact on the hospitality industry.
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