A POPULAR drinks brand once stocked in Sainsbury’s and Amazon has been plunged into administration.
Natural soft drink company Square Root Drinks appointed an administrator on October 3.
Square Root was once stocked on Sainsbury’s and Amazon[/caption]It comes as the brand’s website link has been taken down, while stock is also currently unavailable on Amazon.
Square Root made its retail debut in February 2021, launching into Sainsbury’s through the retailer’s Future Brands initiative.
At the time, the company said it was “exciting to be recognised” by the supermarket as a “bold and authentic brand”.
The brand smashed a £250k crowdfunding drive, overfunding by 230 per cent to hit £577,444 from 570 investors in 2021.
Square Root offered a selection of alcohol-free mocktails and natural soft drink flavours, including Ginger Beer, Cola, non-alcoholic gin and tonic, lemonade, and more.
The company was founded in 2012 by Ed Taylor and Robyn Simms in East London.
Administration is when all control of a company is passed to an appointed licensed insolvency practitioner.
It doesn’t necessarily mean the end of the business.
Administration is when all control of a company is passed to an appointed licensed insolvency practitioner.
It doesn’t necessarily mean the end of the business.
But if the administration process can’t rescue the company or find a new owner, this can lead to liquidation.
Liquidation is the process of selling all assets and then dissolving the company completely.
What does going into administration mean?
WHEN a company enters into administration, all control is passed to an appointed administrator.
The administrator has to leverage the company’s assets and business to repay creditors any outstanding debts.
Once a company enters administration, a “moratorium” is put in place which means no legal action can be taken against it.
Administrators write to your creditors and Companies House to say they’ve been appointed.
They try to stop the company from being liquidated (closing down), and if it can’t it pays as much of a company’s debts from its remaining assets.
The administrator has eight weeks to write a statement explaining what they plan to do to move the business forward.
This must be sent to creditors, employees and Companies House and invite them to approve or amend the plans at a meeting.
A Notice of Intention is used to inform concerning parties that a company intends to enter administration.
It is a physical document which is submitted to court, usually by directors aiming to prevent a company from being liquidated.
Like with a standard administration process, a Notice of Intention stops creditors from taking out any legal action over a company while they try and rectify the business.
COST OF LIVING PRESSURES
The number of craft breweries in the UK fell from 1,828 at the start of 2023 to 1,815 at the start of the year.
That now stands at 1,748 according to the latest figures up to June from the Society of Independent Brewers and Associates (SIBA).
The SIBA UK Brewery Tracker takes into account all brewery openings and closures to give an accurate picture of the number of active brewing businesses.
Craft breweries have been hit hard by the cost of living crisis and the pandemic.
While many producers pivoted to home deliveries during covid lockdowns, they were then hit by rising costs combined with people reigning ion their spending.
The prices of energy, rents and ingredients have all shot up. They have also faced higher interest rates when borrowing money to grow the business.
SIBA chief executive Andy Slee said when the latest figures on closures were published in July: “Independent brewers are reporting good sales growth and strong consumer demand, yet breweries continue to close.
“For most breweries the challenge is financial pressures from rising costs and market access, as well as lingering Covid debt – something SIBA has strongly lobbied Government for help on.”
UK BREWERY NUMBERS
The SIBA UK Brewery Tracker shows there are 1,748 breweries across the country
It covers the period from April 1 to June 30 this year and the net change compared to March 31, 2023.
- Scotland 133 (-3)
- Northern Ireland 29 (-)
- East 187 (-4)
- North East 248 (-3)
- North West 189 (-1)
- Wales 96 (-)
- South West 203 (-4)
- South East 331 (-3)
- Midlands 334 (-11)
- UK: 1,748 (-29)