The Vegan Kind has been bought out of administration as administrators stepped in to rescue the online plant-based food retailer.
Alistair McAlinden and Blair Nimmo from Interpath Advisory were appointed Joint Administrators to Thevegankind Limited on 11 October 2022. Shortly after appointment the business and assets were sold to Lillie SPV Limited in a prepack transaction.
Established in 2013, the Glasgow-based business became the UK’s largest online supermarket dedicated solely to plant-based products, servicing thousands of customers through a next-day delivery model nationwide. The Vegan Kind Supermarket offers over 5,000 plant-based products, as well as monthly vegan beauty and food subscription boxes. In addition, the Vegan Kind and its associated social media platforms including ‘Accidentally Vegan’ have over 800,000 followers and are an important source of information for vegans across the country.
Its initial success led to a £3.5m fundraise in April 2021. Following record revenues of £7.5m during the COVID lockdowns the Company invested in its infrastructure to support the demand for plant-based online orders, including moving to a 35,000 square foot warehouse capable of servicing further significant growth. However, following a downturn in revenue since lockdown restrictions eased, coupled with the increased infrastructure costs, the Company incurred losses leading to cash flow challenges.
All 38 of the Company’s staff have transferred to the new owners under the terms of the transaction, in addition to key management and assets of the Company.
Alistair McAlinden, joint administrator and a managing director at Interpath Advisory, said: “The company’s directors had sought new investment to support the continued operation of the business but those efforts were unsuccessful and the directors took the difficult decision to place the company into administration. However we are glad to have been able to conclude this transaction and give the business the best opportunity of a successful future.”