An interim examiner has been appointed to Kerry-based beer and whiskey-maker Killarney Brewing and Distilling (KBD), which is asset-rich and cash-poor, the High Court heard on Thursday.
Barrister Declan Murphy, who appeared for the company, said a detailed survey of its potential had been carried out by an independent financial expert who believed the protection of a court-appointed examiner could save KBD’s future.
Ms Justice Marguerite Bolger appointed James Anderson of Deloitte as interim examiner to carry out a full investigation of the company’s affairs and potential future business chances and investment possibilities.
In a statement, Mr Anderson said he is “committed to working with the company and all stakeholders to achieve a successful outcome”.
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Mr Murphy told the court that the company was currently asset rich but cash-flow insolvent and required the protection of the court from its creditors and the appointment of an interim examiner. There were strong hopes of saving up to 100 jobs through examinership.
He said the parent company owned seven other companies and boasted the largest independent brewery and visitor centre in Ireland. KBD produces beer, whiskey and gin at Fossa, Kerry, for domestic consumption and export.
A spokesman for KBD said the company had endured “unprecedented challenges during and following” the Covid-19 pandemic, including cost increases and supply chain disruptions. He said the company had reached a “preliminary agreement” with a US investor earlier this year, but the potential partner had recently decided against the transaction.
KBD was founded by local businessmen Tim O’Donoghue, Paul Sheahan in 2013. It opened a large 62,000 sq ft brewery, distillery and visitor centre in Fossa, Co Kerry in 2022, investing a reported €20 million in the site.
The holding company, which has not filed accounts since 2023, reported a turnover of more than €2 million for 2022 in its most recently available set of financial filings.
The company had accumulated losses of more than €4 million at the end of 2022 after losing €1.6 million in what the directors described in a report attached to the accounts as a “challenging year” for the business.
KBD owed more than €6.9 million to creditors at the end of that year, including more than €1.3 million to its lenders.
