East London Liquor Co (ELLC) has been bought out of administration, after changes to its Time to Pay agreement with HMRC left owners struggling.
The spirits producer, which was founded in 2014, went into administration this week.
Founder Alex Wolpert said HMRC introduced new conditions to its Time to Pay agreement which were “untenable and unviable” for the independent business.
“East London Liquor Co was placed into administration this morning after tireless attempts to renegotiate with HMRC were refused,” said Wolpert on social media yesterday.
However, he confirmed that the business was bought out of administration and will continue to operate: “In taking on such drastic measures to counter HMRC’s demands, I have been extremely fortunate to have some incredibly supportive partners who have enabled us to buy the business out of administration so that I can continue as founder to steer East London to its next stage.
“The paperwork has now been filed and we continue to operate the business with the same hard graft we always have,” he continued.
Wolpert said while ELLC will remain “the same distillery and brand”, the financial situation has left “shareholders in a position that we never planned to reach and have done all we can to avoid”.
HMRC is unable to comment on individual cases, however a spokesperson offered a general comment: “We take a supportive approach to dealing with customers who have tax debts, working with them to find the best possible solution based on their financial circumstances.”