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Irish Examiner
5 days ago
- Business
- Irish Examiner
Killarney brewing company collapse: covid cost overruns and whiskey tariffs blamed
The Killarney Brewing and Distilling Company which went into liquidation this week had dozens of creditors when it entered the examinership process in April, with more than €8m owed. The company confirmed the unsuccessful conclusion of its examinership process on Tuesday, with more than 50 jobs impacted by the brewery ceasing operations. The company premises included the plush multi-million euro brewery, whiskey distillery, and visitor centre overlooking the lakes of Killarney in Fossa. The independent expert's report filed as part of a petition to the High Court in April showed Killarney Brewing Company had a creditors' listing topping €8m. Included in the list of creditors of the brewing company were Kerry County Council, which was owed an outstanding amount of just over €108,000, and the Revenue Commissioners, who were owed €143,400. The report said the financial difficulties of the company predominantly arose from delays and the significant overspend on the construction of the company's Fossa facility, which went through an extensive renovation in 2021 and 2024, which it said impacted the company's profitability and cash flow. The estimated cost overrun caused by pandemic-related issues was around €8m, the report said The Killarney Brewing and Distilling company in Fossa, Killarney County Kerry where a liquidator was appointed on Monday. Picture: Don MacMonagle 'As all the hospitality businesses were predominantly closed during the peak pandemic years and completion of the Fossa unit was delayed, significant trading losses were incurred as investment monies raised, which were forecasted to assist with early years working capital, were utilised on the construction-related overspend,' the report said. To address the significant construction overrun costs and aid working capital, the group borrowed around €4.4m from a number of sources in December 2022, the report also noted. Speaking this week, the company said high tariffs on Irish whiskey exports to the US and wider economic uncertainty further hurt the business and had compounded previous challenges arising from the pandemic and ongoing global tensions. The Killarney Brewing and Distilling company in Fossa, Killarney County Kerry where a liquidator was appointed on Monday. "Like many in the drinks manufacturing industry, KBD has faced significant and sustained challenges in recent years, stemming from the lasting effects of the pandemic, delays in opening our state-of-the-art distillery in Fossa, global supply chain disruptions, rising input costs, and ongoing geopolitical and trading pressures," the brewery said. "More recently, high tariffs on Irish whiskey exports to the US and wider economic uncertainty have further impacted the business." Earlier this year, the company had reached a preliminary agreement to merge with a US-based strategic partner, but the partner ultimately chose not to proceed. In response, KBD entered the examinership process in the hope of securing new investment to protect jobs and stabilise operations for the long term. A spokesperson for the liquidator declined to comment. Read More Killarney Brewing & Distilling confirms unsuccessful end of examinership process
RTÉ News
22-07-2025
- Business
- RTÉ News
Killarney Brewing & Distilling company confirms unsuccessful examinership
Killarney Brewing & Distilling Company (KBD) has confirmed that the examinership process it entered into has concluded without a successful investment outcome. Last week, the company's 54 staff were told that the business would cease operations resulting in the loss of their jobs. Yesterday, the High Court appointed James Anderson of Deloitte as a liquidator over KBD. "Like many in the drinks manufacturing industry, KBD has faced significant and sustained challenges in recent years, stemming from the lasting effects of the Covid-19 pandemic, delays in opening our state-of-the-art distillery in Fossa, global supply chain disruptions, rising input costs, and ongoing geopolitical and trading pressures," KBD said in a statement. "More recently, high tariffs on Irish whiskey exports to the US and wider economic uncertainty have further impacted the business." Earlier this year, the company had reached a preliminary agreement to merge with a US-based strategic partner, but the partner ultimately chose not to proceed. In response, KBD entered the examinership process in the hope of securing new investment, a move which proved to be unsuccessful. "Despite tireless efforts, no suitable investor was secured within the timeframe set out by the court," KBD said. "The company would like to express its sincere and heartfelt thanks to our exceptional employees, whose dedication, resilience, and passion never wavered throughout this incredibly difficult time," the company added.
Irish Independent
22-07-2025
- Business
- Irish Independent
Killarney Brewing confirms liquidator is now in place and trading ceased
The company confirmed the end of the examinership on Tuesday. James Anderson, a partner at Deloitte Ireland who was appointed as interim examiner to KBD in April, will now act as liquidator and sell the remaining assets. His appointment following nomination by the company was confirmed by the High Court on Monday despite an attempt last Friday by the Revenue Commissioners to appoint Myles Kirby of Kirby Healy Chartered Accountants instead. Revenue are owed more than €1m and the largest unsecured creditor in the liquidation. KBD confirmed it is now in liquidation. "The company would like to express its sincere and heartfelt thanks to our exceptional employees, whose dedication, resilience, and passion never wavered throughout this incredibly difficult time. We are also deeply grateful to our shareholders and wider investment community for their support and belief in our vision, and to our loyal customers, partners, and the local community in Killarney who have stood by us at every turn. "We remain proud of what we've built together and the craft, care, and creativity that defined our journey,' they said. More than 50 people worked at the company's two Co Kerry sites in Killarney and Fossa, and the company supplied drinks to many pubs and hotels in surrounding areas. Mr Anderson was appointed as examiner in April after a potential merger with a US partner fell through but that process failed to chart a long-term rescue. KBD launched in 2015, opening a taproom in Killarney. It expanded in 2022, opening a brewery and visitors' centre in Fossa, on the outskirts of the town funded with about €12m raised from investors including many in the US. Last year the company launched a plan to raise up to €7m. Companies Registration Office filings this year showed it fell well short of this target, raising about €3.5m – again mainly from US-based investors. KBD's most recently filed accounts show the business recorded losses of €1.6m in 2022, and €513,000 in 2021. This was despite sales doubling in 2022, hitting €2m, up from €850,000 a year earlier.
Irish Examiner
22-07-2025
- Business
- Irish Examiner
'High tariffs' dealt further blow to Killarney Brewing & Distilling as company confirms unsuccessful end of examinership process
Killarney Brewing & Distillery (KBD) Company has confirmed the unsuccessful conclusion of its examinership process, with more 50 jobs to be impacted by the brewery ceasing operations. The premises, which opened in 2022, includes the plush multi-million euro brewery, whiskey distillery, and visitor centre overlooking the lakes of Killarney in Fossa. The company said high tariffs on Irish whiskey exports to the US and wider economic uncertainty further hurt the business and had compounded previous challenges arising from the pandemic and ongoing global tensions. "Like many in the drinks manufacturing industry, KBD has faced significant and sustained challenges in recent years, stemming from the lasting effects of the pandemic, delays in opening our state-of-the-art distillery in Fossa, global supply chain disruptions, rising input costs, and ongoing geopolitical and trading pressures," the brewery said on Tuesday. "More recently, high tariffs on Irish whiskey exports to the US and wider economic uncertainty have further impacted the business." Earlier this year, the company had reached a preliminary agreement to merge with a US-based strategic partner, but the partner ultimately chose not to proceed. In response, KBD entered the examinership process in the hope of securing new investment to protect jobs and stabilise operations for the long term. Last week saw the mayor of Killarney and local councillors call on the Department of Enterprise to push for every possible support to help the distillery, but KBD said that despite "tireless efforts, no suitable investor was secured within the timeframe set out by the court." Speaking on its closure, the brewery concluded: "The company would like to express its sincere and heartfelt thanks to our exceptional employees, whose dedication, resilience, and passion never wavered throughout this incredibly difficult time. "We are also deeply grateful to our shareholders and wider investment community for their support and belief in our vision, and to our loyal customers, partners, and the local community in Killarney who have stood by us at every turn. "We remain proud of what we've built together and the craft, care, and creativity that defined our journey." The large distillery opened in 2022, expanding on the operation which began in 2015 in Killarney town. Millions of euro has been invested by the company in the Fossa premises and distillery, which includes a restaurant, a number of bars, and large function rooms, all catering to leisure, tour, and corporate business.
Irish Examiner
17-07-2025
- Business
- Irish Examiner
Over 50 jobs lost as Killarney Brewing & Distilling Company ceases operation
More than 50 staff at Killarney Brewing & Distilling Company have been told the firm is to cease operations at both of its premises, including the plush multi-million euro brewery, whiskey distillery and visitors' centre overlooking the lakes of Killarney in Fossa. Millions of euro have been invested by the company in the Fossa premises and large distillery, which opened in 2022, and which includes a restaurant, a number of bars, and large function rooms, catering to leisure, tour and corporate business. However, the covid pandemic, as well as the more recent tariff threat, have impacted its business potential severely, delaying the original opening, as well as its expansion into the areas of weddings and other functions. The original KBD brewery premises, in a former mineral water factory in the Muckross Road, is also impacted. All 55 staff are to lose their positions, it has been confirmed locally, after staff were called to meetings. The company has strong local roots and was anchored in Killarney emigrants to Chicago and the US. Upwards of €30m has been invested in the luxury premises in Fossa on the Ring of Kerry. However, plans to merge with a US strategic partner fell through earlier this year, and the company went into examinership in April. At the time, KBD remained hopeful the process would be a viable path to secure the company's future. 'Like many in the drinks manufacturing industry, KBD has endured unprecedented challenges during and following the covid-19 pandemic. These included 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,' it said in April. The continuing threat and uncertainty over tariffs and a downturn in coach and other tourism locally have also impacted the business. The announcement to staff, during Killarney Race Week, normally the high point of the summer season in Killarney, is a particular blow, one local businessman who did not wish to be named said. The examiner appointed to the company is making an application to the High Court on Friday morning. A spokesperson for the examiner said it would not be appropriate to comment at this time. Read More Killarney Brewing company enters examinership aiming to save 100 jobs
