Animus Distillery in Kyneton has entered into voluntary administration.
Leading advisory and restructuring firm, Cor Cordis, has been engaged to assist the business with opportunities for sale or potential recapitalisation.
In a statement issued to customers and partners, the Animus team said the decision was not made lightly.
“We firmly believe that this is the best course of action to ensure the long-term viability and future success of Animus Distillery,” the statement said.
“We want to assure you that we are committed to minimising any impact on our customers and partners through this process.
“Our team will continue to work diligently to fulfil any outstanding orders and maintain open lines of communication.”
The news comes as credit reporting bureau, CreditorWatch, released the April results for its Business Risk Index, revealing that hospitality businesses were most vulnerable to current economic conditions by a significant margin over other industries, with a 7.45 per cent chance of failure over the next 12 months.
The major challenge for businesses in the food and beverage services industry is their exposure to the discretionary spending of consumers, which has dried up as cost-of-living pressures mount.
Hospitality businesses have also struggled to manage cost pressures, such as power prices and cost of ingredients, as well as labour shortages.
