BoozeBud collapses due to insufficient funds

On Thursday, BoozeBud posted an update on its website stating it was no longer taking orders and has appointed voluntary administrators from William Buck as of May 2. The Sydney based startup has been delivering alcohol across the country since 2014. Originally launched as a beer delivery company, the business expanded its offering to a variety of liquor in 2016 and featured products from Penfolds, G.H Mumm, Jack Daniels, Asahi, and Johnnie Walker alongside its range of over 2,000 products across other international and local brands.

The website offered many appealing features including same day delivery in major cities and promotional offers such as Wine Wednesday of 2-for-1 Twosdays. It also had its own exclusive app available for download on both IOS and Android devices.

Speaking to News.com.au, administrator Michael Brereton of Wiliam Buck said, “we have made the difficult decision that the company has insufficient funds to continue operating. We have accordingly been forced to stop taking future orders via the online portal … We have also, made the difficult decision to lay off staff.”

“BoozeBud Holdings has seen the majority of the board of directors resign over the course of the past few months,” Mr Brereton also revealed.

“Interestingly, the sole director of BoozeBud Holdings Ltd was only appointed as a director of the company on Wednesday 26 April 2023. The remaining directors then resigned on 27 April 2023. Further inquires are being made in this regard.”

BoozeBud has had an interesting history in its nine years of operation. In 2018 BoozeBud was acquired by ZX Ventures which in 2019 was purchased alongside Carlton & United Breweries by Asahi. Founders Alex Gale, Mark Woollcott, and Andy Williamson bought BoozeBud back just one year later. BoozeBud then bought Get Wines Direct in 2021, a wine delivery business in operation since 2001. The sum was not disclosed but it was revealed that the acquisition gave BoozeBud access to Get Wines Direct’s 200,000 active customers and $80 million in combined annual revenue, and made the company the biggest alcohol delivery company in the country.

In the past two years the company has made a variety of operational changes including rebuilding its digital presence and moving warehouses and appointing veteran executive of the liquor industry Stuart Barclay as CEO in September last year.

The first creditor’s meeting for BoozeBud will be held on May 9 and the future of the company will be decided by creditors at the second meeting, Mr Brereton said.

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