Incorporated in February 2023, Spirit Label Solutions appointed administrators from FRP Advisory on 8 November, just 10 months after the Renfrew-based firm went into full operation.
The 16-person business had fallen into difficulty following unsustainable cashflow pressure, according to FRP joint administrators Michelle Elliot and Callum Carmichael.
Following an accelerated sale process, a deal to buy the company as a going concern was agreed with Spirit Labels Ltd for an undisclosed sum. All 16 staff will transfer to the new company under TUPE.
“We have injected significant working capital, putting the business in a very strong financial position,” said Hyslop, owner of Spirit Labels Ltd.
“Spirit Labels is a fantastic company that just needs time to develop and grow, and the restructure allows for this to happen.
“I look forward to working with the senior team of Tom, Finlay, Jamie, and Chris, and indeed all of our valued employees, to take Spirit Labels forward and vitally, to support and provide the very best service to our valued customer base.”
Spirit Labels was founded by an experienced team of print professionals to take advantage of a rapidly expanding market for whisky labelling, and in late 2023 began production at a £5m purpose-built 1,400sqm factory at Glasgow Airport.
Headed up and owned by CEO Alex Mulvenny, previously of Labelgraphics and MCC Label, and run by managing director Tom Lightbody and directors Finlay McLachlan, Jamie Thomson, and Chris Crockert, the firm had set sights on strong growth with a mystery lineup of top-spec kit.
“We’ve spec’d the machines to be able to produce any label in the spirits sector, so it’s high embellishment, multiple foils, multiple screens and embosses – in terms of embellishment, we’re confident we can match [our competitors] from day one,” Mulvenny told Printweek in early 2024.
Increased operational costs and a global downturn in the whisky industry, however, put Spirit Label Solutions into difficulty, according to administrators.
After the boom year of 2022, Scotch whisky exports corrected downwards by 9.5% in 2023, according to Scotch Whisky Association figures. The first half of 2024 similarly showed an 18% drop on H1 2023’s figures.
Since 2014, Scotland has seen more than 35 new malt distilleries begin production; still more are due to begin production in the coming years.
Michelle Elliot, partner at FRP and joint administrator, said: “Spirit Label Solutions Limited had quickly acquired a strong reputation within the Scottish whisky industry offering innovative printing solutions to a wide range of customers.
“We are pleased to have secured a sale of the business to Spirit Labels Ltd and wish the new owners every success in taking the business forward.
“We are particularly encouraged to have secured the transfer of the workforce and would extend our thanks to everyone involved for their support throughout the process."
Companies House has received notice of the administrators’ proposals, with the document currently being processed.
