Republic of Fremantle has called in administrators to restructure the urban distillery and bar business, after grappling with pandemic-induced delays and industry challenges.
Republic of Fremantle Distilling Co has called in administrators to restructure the urban distillery and bar business, after grappling with pandemic-induced delays and industry challenges.
The board behind the spirits distillery, bar and kitchen, and associated hospitality entity, voluntarily appointed HLB Mann Judd administrators Greg Quin and Kim Wallman on Wednesday.
Republic of Fremantle co-founder John McVeigh has assured its business as usual for the popular venue during what they intend to be a five-week restructuring process.
The opening of the Pakenham Street business in Fremantle’s historic West End was delayed by 18 months due to the pandemic. It opened its doors in late 2020.
It was founded by Mr McVeigh and local publicans Jason Townes and Matt Giudice, who are also the partners behind fellow Fremantle venues Ronnie Nights and Strange Company.
In the past five years 20 new distilleries have been established in Western Australia, according to Business News’ Data & Insights, including Esperance Distillery Co and Exchange Hotel Pinjarra.
Local competition is booming but industry-wide challenges like the hefty alcohol tax on spirits continue to hinder small businesses, which make up majority of the sector.
Mr McVeigh said the administration, which they intend to be a short process, would give them the breathing space to further restructure the business.
He said they had already moved to cut costs and diverse revenue streams amid industry challenges and competitiveness.
“Over the last year we have made many changes to the business to reduce costs and grow revenue in the face of tough conditions in the hospitality industry, on the back of many difficulties we faced during 18 months of delay of our launch during COVID and significantly increased competition in the spirts industry,” Mr McVeigh said.
“We have continued to diversify revenue streams and product lines in response to rapidly changing demand. And we have a strong revenue performance outlook for both the hospitality and distilling businesses in the coming festive season.
“We are confident that the restructure will result in a positive reset that will allow this young business sustainable growth well into its bright future.”
HLB Insolvency managing partner Greg Quin said they were supporting and facilitating a restructuring process on behalf of the board and the investment holding company.
“It will be business as usual for the time being whilst the restructuring proposal is finalised and put before stakeholders for their consideration,” he said.
Republic of Fremantle sells several of its gins and vodkas, and is also known for its distilling experiences hosted at the 100-seat venue.
At the other end of Fremantle, brewery, distillery and restaurant Running with Thieves tumbled into administration last year.
Major mining fleet provider Northfleet’s former and current bosses struck a deal to save the South Fremantle venue.
