Beloved spirit maker Husk Farm Distillery hit by collapse of Aussie booze giant Proof & Company

Booze from a popular New South Wales distillery is being held hostage by a logistics company which is owed thousands from a collapsed Australian spirits giant.

A popular New South Wales distillery has been caught in the crossfire of the collapse of an Australian booze giant. Picture: Nigel Hallett

A popular New South Wales distillery has been caught in the crossfire of the collapse of an Australian booze giant, with a logistics company owed money from the failed business now locking up a cache of their booze.

Proof & Company, one of Asia Pacific’s biggest independent spirits companies, announced its decision to place its Australian arm into administration last month.

It can now be revealed Husk Farm Distillery, Australia’s first agricultural rum distillery nestled in the Northern Rivers in Tumbulgum, has been caught up in the fallout, with their stock being held ransom at the spirit giant’s warehouse facilities.

Unsecured and secured creditors are owed over $13.4m and $1.5m respectively in the collapse. Along with employee entitlements, it brings total liabilities to a whopping $15.2m.

Husk Distillery in Tumbulgum. Picture: Supplied

Husk announced last year that Proof & Company had assumed exclusive distributorship for their esteemed range of spirits, including their unique Australian rums and iconic Ink Gin.

Celebrity Margot Robbie was previously snapped drinking Husk’s unique purple and pink Ink Gin, leading to the product selling out online and at Dan Murphy’s in the days after.

Proof & Company Australia’s stock is stored at two Mainfreight warehouse facilities located in Derrimut and Epping in Victoria.

Administrators Shane Cremin and Brent Morgan of Rodgers Reidy told creditors they had been urgently trying to resolve the dispute with the logistics company – who say they are owed money – about the release of stock.

Margot Robbie previously snapped a photo enjoying some Ink Gin.

“The administrators have received several claims to the company’s stock by customers,” minutes from a creditor meeting lodged with the Australian Securities and Investments Commission read.

“The administrators were advised by Mainfreight upon their appointment that it is claiming a lien over the stock and has restricted the release of all stock from its warehouses until the company’s pre-appointment debt is paid.

“The administrators requested details of the debt … we have reconciled the sum owed and are currently attempting to obtain funds to enable payment to be made and trading to recommence.”

Husk chief executive Paul Messenger told News Corp the company was working to resolve the matter “as quickly as possible”.

“We are a listed creditor of Proof & Company and our priority now is to resume direct control of our sales and distribution and avoid inconvenience to our customers,” he said.

Husk co-founders Paul Messenger and wife Mandy. Picture: Supplied

Mr Cremin said Proof & Company Australia had been able to continue trading in a reduced capacity in order to fulfil ongoing customer orders while expressions of interest were sought for a restructure or sale of the business assets.

He said there had been “considerable interest” to date to acquire the stock in bulk and for

specific brands of liquor.

“We will consider the offers on hand in light of the inability to trade at this point and will determine the best outcome in the interests of creditors, namely employees who have first priority over the proceeds from stock,” the minutes read.

A total of 12 employees have been sacked as a result of the administration and are owed $331,880 between them.

A total of 12 employees have been sacked as a result of the administration. Picture: Proof & Company

Mr Cremin said Proof & Company intended to propose a deal to creditors, which would see employees paid in full and unsecured creditors receive a return greater than what they would get if the business was placed into liquidation.

Proof & Company previously said the decision to place the Australian business in administration was due to “difficult trading conditions” and “local economic downturn”.

The Singapore-based group, which has offices in Hong Kong, Shanghai, Beijing, Auckland and Christchurch, distributes over 50 independent spirits brands and has worked with more than 10,000 hospitality partners.

Its Australian offices are in Melbourne, Sydney and Adelaide.

Another brand that has partnered with Proof & Company Australia in recent years include Victoria’s bottled cocktail brand The Everleigh Bottling Co.

The Everleigh Bottling Co. is run by hospitality veterans Michael and Zara Madrusan, who recently announced two of their Melbourne venues – the CBD’s Bar Margaux and award-winning cocktail bar the Everleigh – had entered liquidation.

Originally published as Beloved spirit maker Husk Farm Distillery hit by collapse of Aussie booze giant Proof & Company