Old Young’s Distillery goes into voluntary administration despite receiving record crowdfunding for expansion

An award-winning Swan Valley distillery has placed itself into voluntary administration less than a year after crowdfunding for an ambitious $30m “cathedral of gin”. Old Young’s closed its beloved restaurant just months ago with plans to focus on becoming a “world-class distillery”, now its future is up in the air with Australian Distilling going into administration on September 9. Australian Distilling was established in 2014 and trades as Old Young’s, Juniper Society and Gingin Gin. In a letter sent to shareholders last week the company announced the sudden move into administration, blaming COVID-19 for their financial struggles. “We have been working diligently to explore a number of opportunities to ensure the long-term profitability and growth of Australian Distilling,” the statement said. “With sustainability being our number one value, the board has made the decision to place Australian Distilling into voluntary administration. “We have appointed RSM Australia today as administrators to address long-standing debts starting from COVID that have weighed on the company’s financial position.” With its future up in the air, ADL announced it entered Memorandum of Understanding to explore a partnership with Panama Craft Spirits. “This opportunity with PCS has the potential to fast-track our international export plans, while adding a complementary range of spirits to our current domestic profile,” the letter said. Despite the lack of clarity surrounding the distillery’s future, RSM’s national head of restructuring and recovery Jerome Mohen said Old Young’s will continue “business as usual” in the interim. “We have taken control of the operations of the company and are undertaking an urgent assessment of its financial position to form a view regarding its future viability, and to provide the company with the opportunity to restructure its business,” Mr Mohen said. Since starting out in a 36-square-metre shed in 2016, Old Young’s has become one of most highly decorated distillers in the State, winning an array of prestigious awards. The WA-based company had ambitious plans to expand and build a $30 million ‘cathedral of gin’ in the Swan Valley. A 500-capacity venue featuring a distillery, tasting room, restaurant, secret bar and accommodation, with hopes it would rival South Australia’s famous d’Arenberg Cube. The distillery had two batches of crowdfunding for its expansion plans on Birchal, including a record breaking raise in March 2023, when they hit their goal of $2.7 million in just 23 hours. It was WA’s fastest-ever $2m crowdfunded in Birchal’s history, and the largest raise for an alcohol related project in Australia. The business then received a further $1.3 million from 392 investors in November last year, following a second round of crowdfunding. Old Young’s founder James Young said the administration will have investors at the forefront, including those from the Birchal campaigns. “We are working with our advisors to formulate a restructuring proposal that will provide the best outcome for creditors and ensures shareholders retain their shares as we exit administration, including those issued via previous crowdfunding campaigns,” Mr Young said. The news comes after closure of the restaurant side of the business, Old Young’s Kitchen, left locals devastated. “We are so proud of everything we have achieved at Old Young’s Kitchen since opening in the heart of COVID-19 back in December 2021,” Mr Young previously told The West Australian. “This decision was obviously a big call for us, and while we are incredibly proud of the success of the business to date, we decided to go out on a high. “Running a top-quality hospitality business takes a laser focus that we want and need to apply to building a world-class distillery.” Despite the main restaurant closing its doors months ago, Old Young’s Kitchen still operates for functions and booked events, which will not be affected as it doesn’t fall under Australian Distilling.