The decision followed a strategic review of the business under a formal dales process on 13 October 2022 to explore the strategic and financing options available to the company, with scope to potentially sell the business.
While the gin and honey producer was able to secure funding in the form of a loan for £750,000 in December to support near term working capital, the company concluded it would need further capital early in 2023.
More funding needed
A statement from BHC read: “At that time the board made clear that further funding would need to be secured early this year, which the Company has attempted to identify since this date, but it has proved extremely challenging, with no offer of funding support being forthcoming to date.
“Significant costs savings have been made in the business in order to conserve cash. Notwithstanding these cost savings, BHC will require further funding by end of March 2023, based on current management forecasts.”
With no sign of extra funding forthcoming, the BHC board made the regrettable decision to take ‘necessary steps’ to preserve value for its creditors.
Intention to appoint administrators
“The Board has therefore resolved to file notice of its intention to appoint administrators, with a view to appointing Partners of FRP Advisory Trading Limited as administrators of BHC,” the statement concluded.
In light of the situation, BHC’s board announced it had requested a suspension of trading in the company’s ordinary shares on the Aquis stock exchange with effect from 8am today (21 March).
Plans to appoint administrators come just over a year since BHC announced it would close its Worminghall, Buckinghamshire office and distillery and consolidate production, dispatch and research & development at its Market Harborough site. This came on the back of annual sales ahead of expectations in a trading update.
Meanwhile, earlier this month, the former site and machinery used by Yorkshire-based pie maker Vale of Mowbray has been sold out of administration.
