Liquor Loot collapses into administration amid cash flow problems
Spirit subscription service Liquor Loot has collapsed into administration as the company was reportedly struggling with cash flow.
Liquor Loot and two related entities have appointed Jirsch Sutherland’s Andrew Spring and Trent Devine as joint administrators.
An early assessment of the business suggests the retailer was facing challenges related to its cash flow, Spring told SmartCompany. Spring added he plans to trade the business through the administration process and is optimistic about the future of the company.
The administrators have not laid off staff, and shoppers are still able to access Liquor Loot tasting packs, subscription services, and full bottles via its website.
Founded in 2016 by Joel Hauer, Liquor Loot offers subscription boxes and tasking packs that allow customers to try new spirits without having to purchase a full-sized bottle. A group of business people including Tony Gandel invested in the business in 2021.
The company’s total sales exceeded $10 million in August 2022, before it launched an equity crowdfunding campaign the following month, seeking about $3 million to fuel its potential expansion into Hong Kong and Singapore.
However, trading conditions become more difficult in 2023 as rising interest rates forced consumers, and investors, to be more conservative with their spending, according to SmartCompany.
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