Spirits brand is to restructure to “safeguard the future” of the business
Gin and whisky maker Isle of Harris Distillery is to restructure its business in a bid to safeguard its future, according to managing director Simon Erlanger.
The Hebridean-based brand’s consultation will see it reduce production and the size of the workforce at the distillery, where more than 50 people are employed. Discussions on the scale of the cuts are still ongoing.
Erlanger said “challenging headwinds” in the wider spirits industry had prompted “some incredibly difficult decisions”.
He said that following a number of cost-cutting measures, voluntary redundancy would be offered to staff in the first instance. Compulsory redundancy would follow if the distillery does not fulfil its cost reduction target.
“It is deeply regrettable we find ourselves in this situation and would like to take the opportunity to thank our entire team, particularly those affected by the changes, for their dedication and contribution to the business,” he said.
“To date, Isle of Harris Distillery represents a £20m+ investment in the island economy. We remain true to our founding purpose as a sustainable, multi-generational firm built to support the community for many years to come. The regrettable measures now being taken are necessary to help fulfil that long term vision.”
Yesterday (29 April) the distillery was closed for public tours, though the firm has since confirmed on social media that it has reopened today.
Isle of Harris Distillery was founded in 2015, when it originally employed 10 people.
The distillery produces Hearach whiskies and Isle of Harris gins.