Aromantic, a British cosmetic and skincare company, has collapsed into administration after nearly 30 years of trading, resulting in the loss of all 11 jobs. The family-run business, which specialised in natural and organic beauty products, ceased operations and entered administration.
Company Background and Operations
Founded in 1997 by Kolbjorn Borseth, who later transferred control to his son Benjamin, Aromantic achieved a £1.1 million turnover. The company operated through its own website and online marketplaces such as Amazon and Shopify, supplying oils, fragrances, and ingredients for customers to create creams, lotions, balms, toiletries, and spa treatments. Its clientele ranged from crafters to salon owners and beauty professionals.
Administration and Asset Sale
Christopher Horner and Kevin Pinkerton, from the restructuring firm Business Rescue Expert, were appointed joint administrators of Aromantic Limited, based at Greshop Industrial Estate in Forres, Scotland. The administrators finalised the disposal of the company's assets, including its stock, websites, and online platforms, to an unrelated party.
All 11 staff members were made redundant immediately prior to the administration. Kevin Pinkerton noted that Aromantic had performed strongly during the pandemic, though sales subsequently diminished.
Financial Difficulties and Insolvency
Pinkerton stated: "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 repayment requirements had a material effect on its cashflow.
Over the summer, the company sought assistance to explore ways to keep the business going. Pinkerton added: "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.
Understanding Administration
Companies enter administration when they cannot pay their debts, a situation referred to as insolvency. Payments to creditors are frozen during this period, and an administrator from a qualified accountancy firm assumes control. They manage operations until a new buyer is found, with creditors repaid as much as possible, typically by selling assets. Administration is a protracted process that can span several months, and a company may be placed into liquidation if there is no viable way to generate additional funds.
