Aussie arm of spirits giant Proof & Company collapses owing over $13m
The Australian arm of an international spirit company that backed well-known Victorian and NSW’s booze brands has collapsed owing over $13m, with an urgent sale now underway.
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The Australian arm of an international spirit company that backed well-known Victorian and New South Wales’ booze brands has collapsed owing more than $13m, with administrators undertaking an urgent sale campaign.
Proof & Company, one of Asia Pacific’s leading independent spirits companies, announced its decision to place its Australian business into administration, citing “difficult trading conditions” and “local economic downturn”.
The Australian arm, which is housed in a company called Sa’Pere Drinks, had administrators Shane Cremin and Brent Morgan of Rodgers Reidy appointed two weeks ago.
The Singapore-based Proof & Company, which has additional 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.
Brands that have partnered with Proof & Company Australia in recent years include Victoria’s The Everleigh Bottling Co. and New South Wales’ Husk Farm Distillery.
Bottled cocktail brand 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 collapsed into liquidation.
Nestled in the Northern Rivers in North Tumbulgum, 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.
Proof & Company Australia collapsed owing over $13.7m to creditors, including more than $2.2m to the tax office, a new report by director Paul Gabie lodged with the Australian Securities and Investments Commission reveals.
Other creditors include the Australian Government Department of Home Affairs ($5,166,986), packaging group ecoSPIRITS ($522,517), Husk Industries ($273,400), accounting firm LDAssurance ($22,000) and Four Seasons Hotel Sydney ($23,130).
More than $220,000 is owed to 13 employees including $105,937 in annual leave and $39,273 in superannuation.
Mr Gabie listed $3.3m as being owed to the company, including from alcoholic drinks retailer and hotel and poker machine operator Endeavour Group ($339,520), Coles ($123,057), booze wholesaler Paramount Liquor ($702,669) and over $1.4m in intercompany loans.
The company collapsed with over $3.1m in assets, including $2.9m in spirits and distribution inventory and $131,924 in an ANZ bank account.
Administrator Mr Cremin told News Corp that he had launched a sales campaign, and that the company also plans to present a proposal to its creditors.
“The parent entity has advised that it’s going to submit a deed of company arrangement to creditors which will enhance the return to them,” he said.
“I’ve also called for expressions of interest to acquire the business and assets.
“The parent entity can put a lump sum money up to enhance the return (to creditors) and then the money from the sale will flow in as well.”
Mr Cremin said he had already received “considerable interest” from potential buyers.
“We’re doing what we can to give as much back as possible to creditors and have this business continue on as a going concern in someone else’s hands,” he said.
Through its Proof Creative subsidiary, the company has also provided consultancy services for bars, including Melbourne venues La Madonna situated on Little Collins St in the Next Hotel and Sky Bar, located on the 40th floor of the five-star Southbank hotel Oakwood Premier.
Proof Creative also worked on the InterContinental Sydney’s restoration and relaunch of rooftop bar Aster and lobby bar The Treasury.
Proof & Company said the decision to place the Australian business into voluntary administration “was not made lightly”.
“This follows increasingly difficult trading conditions in Australia, including the economic downturn, rising cost of living, and consolidation in the spirits sector,” they told News Corp.
“(The administrators’) objective is to explore restructuring options that are in the best interest of the company’s customers and creditors.
“Sa’Pere Drinks will continue to service customers in the short term, while the administrators review and consider recommendations to creditors.
“The board of directors of Sa’Pere Drinks evaluated all available options for continuing the business in its current form.”
The company, which was founded in 2012, said its operations in Singapore, Hong Kong and New Zealand were not impacted by this process and continued to run as normal.
Originally published as Aussie arm of spirits giant Proof & Company collapses owing over $13m
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