Online wine retailer, Just Wines, has acquired craft spirit subscription service Liquor Loot, which went into voluntary administration in March.
Turnaround and insolvency company Jirsch Sutherland partner, Andrew Spring, negotiated the sale of Liquor Loot and its assets.
Liquor Loot founder and director, Joel Hauer, said going into voluntary administration was “tough but necessary” in trying to secure the company’s future and get the best outcome for its stakeholders.
“The process involved navigating significant challenges, particularly in maintaining business operations and engaging with potential buyers to ensure they had the necessary context for an informed decision,” Hauer said.
But the sale marked the beginning of “an exciting new era” for the company.
“It offered us a unique opportunity to utilise their extensive warehouse facilities, leverage their logistics capabilities, and benefit from their experienced staff and shared overheads.
“This synergy between Liquor Loot and Just Wines is set to fast-track our path to profitability under the new ownership, creating a right-sized platform for success in a competitive market,” he said.
Spring, who had also arranged the sale of Sans Drinks to Just Wines last year, said the speed of the VA process enables administrators to focus on finding the best solution to preserve value for creditors and to save jobs.
“The VA process takes the pressure off the directors and gives the business the best chance of survival. With Liquor Loot, partnering with an established, experienced online retailer will help improve the business and take it to the next level,” Spring said.
Just Wines founder, Nitesh Bhatia, said Liquor Loot had established itself as a “compelling brand”.
“Its unique business model, where customers can sample products in small bottle formats before committing to a full bottle purchase, has proven successful, with over 61,000 customers placing orders in recent years. It would have been a shame to see Liquor Loot close its doors,” Bhatia says.
Adding spirits to its portfolio also shifts Just Wines into a comprehensive liquor and beverage company, which Bhatia said would strengthen its market appeal and competitive position.
“We are always on the lookout for opportunities in the liquor industry,” he said.
Hauer will stay on with the company.
“I’m excited to see the brand grow beyond its current boundaries, recapitalised under new management to explore new markets and product categories including collaborations with the wider Just Wines group of businesses.
“My focus will be on ensuring that our core values of education, experience, and a high-quality curated selection of world-renowned spirits will continue to guide the company,” he said.
Bhatia said Hauer would be “instrumental” in guiding Liquor Loot through the transition.
“His role will focus on leveraging his extensive experience to continue the growth trajectory of Liquor Loot, and our team will work closely with him to optimise operations and explore new market opportunities,” Bhatia said.
