GlenWyvis Distillery in Dingwall, the world's first community-owned whisky distillery, has filed a Notice of Intention to Appoint Administrators (NOIA) after years of significant financial pressure. Management shared the news with members on September 23, with the notice to be filed at the Court of Session in Edinburgh.
Financial struggles and depleted reserves
Founded in 2015 by former Army Air Corps helicopter pilot John McKenzie, the distillery now has more than 3,500 shareholders. It began operating as a not-for-profit Community Benefit Society in 2016, and by 2019 had over 500 casks resting onsite, producing both whisky and gin.
In an email seen by The Press and Journal, the management committee cited significant strain due to increased operating costs and challenging conditions in the whisky market, along with ongoing external pressures. These factors caused the society's cash reserves to become "depleted" over the years.
Explored alternatives and next steps
Management stressed that other options to secure the business' future were explored, including appointing Interpath Advisory to undertake an external fundraising process, but these were not enough. Once the notice is filed, the distillery will have a period of protection lasting up to 10 days until administrators are officially appointed.
During this time, the committee will work with the nominated joint administrators to "prepare for a potential administration" and "determine the appropriate strategy for the society and its assets". The decision comes as the distillery remains in a years-long feud with its founder, who left in 2019 but still serves as the business' landlord.
Impact on members and investors
While separate communication will be sent to private cask owners, members have been warned they will not be able to withdraw their share capital during this period. The email states that members' investments cannot be confirmed at this stage and will ultimately be determined by the outcome of the administration.
The management committee concluded: "The society exists because of the support of its members. We recognise the significance of this development for everyone who has invested in and supported the distillery since its inception and that this news will be incredibly difficult and disappointing for you. We also recognise that this is not the outcome which members, wider stakeholders and the management committee would have wanted for the society, but the management committee was left with no option but to lodge the NOIA."
