Top News

Founded in 2015 by business school friends Jon Hulme and John Burke, who met in Madrid, the gin company became one of the most high-profile alumni of BBC's Dragons' Den, securing backing from investor Sarah Willingham in exchange for a 12.5% stake in 2016. It claims to be the biggest gin subscription club in the UK and dispatches small-batch and rare gins to customers all over the UK. Members receive a monthly or bi-monthly "Gin of the Month" box containing a full-sized bottle of gin, tonics, cocktail ingredients, and snacks.

Each Gin of the Month box is £47. Customers can also sign up for annual gift memberships. However, Craft Gin Club has now warned lenders that the firm faces collapse unless they sign off on a major restructuring plan.

The company has reportedly called in restructuring experts at Leonard Curtis with the hopes of having £4.2 million worth of debt wiped out in return for 18.3% of shares in a debt-for-equity swap.

Documents seen by The Sunday Times reveal the company has been experiencing financial difficulties and is on the brink of administration after a plunge in sales and a two-year-long tax dispute over how VAT should be charged on their subscription boxes.

HMRC hit the firm with a £5.2 million bill, but Craft Gin Club fought it and eventually won.

If the plan is not signed off on by 75% of voting lenders, the company said it will likely collapse into administration, leaving them with barely anything.

As reported by The Times, the documents stated that directors had "reached the conclusion that the company is insolvent and unable to pay its debts as and when they fall due."

The latest accounts show revenue falling by around 17% to £15.8 million in the year to January 2025, although losses narrowed compared with the previous period.

Directors have pointed to a combination of a "maturing gin market" and tougher economic conditions as key factors behind the slowdown.

Under the proposed CVA, the company would restructure its balance sheet to return to sustainable growth. Management has suggested that the business could further pivot into rum and ready-to-drink products if the plan is approved.

If creditors reject the restructuring proposal, administrators are expected to be appointed, leaving investors and shareholders at risk of significant losses.

The company has previously been recognised for its rapid growth, featuring on the inaugural 2022 FEBE Growth 100 list of fast-growing founder-led UK businesses. It also won the Food and Drink People's Choice Award in 2021, picked up an award at the Great British Entrepreneur Awards the same year, and was named on the Sunday Times Fast Track "Ones to Watch" list.

The Express has contacted Craft Gin Club for comment.