Killarney Brewing company enters examinership aiming to save 100 jobs

High Court hears company is asset-rich and cash-poor

Killarney Brewing and Distillery Company produced premium Killarney beer, whiskey and gin at Fossa, Kerry, for both home and export consumption. Picture: Killarney Brewing and Distillery

Killarney Brewing & Distilling Company (KBD) believes the process of examinership will be a viable path to secure the company’s future, it said, announcing it has filed a petition for the appointment of an Examiner over the companies within the group.

Ten years ago, the company, which has strong Chicago links, opened a tap room on the Muckross Road and in 2022, it opened a multi-million euro brewing and distillery premises and a luxuriously fitted restaurant and visitor’s centre in Fossa, with picturesque views of the Killarney mountains and valley.

The “unprecedented challenges of covid”, and more recently, a planned merger with a US partner had put the company under pressure, it said in a statement issued by the Fossa Killarney-based company to the Examiner.

“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.

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,” it said.

The directors believe the Examinership process presents the most viable path to secure the company’s future by attracting new investment from experienced industry partners, the statement said.

KBD remains incredibly grateful for the continued support of its employees, customers, partners and shareholders. It is our belief that this decision will safeguard employment, stabilise operations in the medium to long term and secure a sustainable future. KBD is fully committed to working closely with the Examiner to achieve the best possible outcome for all stakeholders.

James Anderson, Partner, Deloitte Ireland, has been appointed as Interim Examiner to Killarney Brewing &Distilling Holdings Public Limited Company and related companies.

Mr Anderson was appointed following the filing of a petition by the Company in the High Court late on Wednesday. The company believes the Examinership process presents the most viable path to secure the company’s future.

Speaking on his appointment, Mr Anderson said he is “committed to working with the company and all stakeholders to achieve a successful outcome”.

The court was told some 100 jobs were involved and there were strong hopes of saving them.