Aromantic, a family-run Scottish cosmetics and skincare firm, has entered administration after nearly three decades of trading, with all 11 employees made redundant.
The company, which supplied natural and organic beauty products, sold oils, fragrances and ingredients for customers making their own creams, lotions, balms, toiletries and spa products. It traded through its own website as well as Amazon and Shopify, serving home crafters, salon owners and beauty therapists.
Administrators appointed and assets sold
Christopher Horner and Kevin Pinkerton, of restructuring and insolvency practice Business Rescue Expert, have been appointed joint administrators of Scotland-based Aromantic Limited. They have secured the sale of the company's assets, including its stock, websites and online platforms, to an unrelated party.
The company, based at the Greshop Industrial Estate in Forres, had a £1.1 million turnover. It was established in 1997 by Kolbjorn Borseth, who later handed the running of the business to his son Benjamin.
Financial pressures cited
Kevin Pinkerton said Aromantic had performed well during the pandemic, but sales dropped off in the aftermath. He added: "The fall in revenue, combined with increasing raw material, shipping and employment costs, contributed to the business becoming insolvent."
Aromantic took out short-term loans to stay afloat, but the repayment requirements affected its cashflow. Over the summer, the company sought assistance to explore ways to keep the business going. Pinkerton said: "Working with the director, we tried every avenue to enable Aromantic to continue trading or sell it as a going concern, but regrettably, a formal insolvency process was the only option."
Aromantic has been contacted for comment.
