LUXURY soapmaker Arran Aromatics went into administration with debts of £1.8 million while being owed money by a string of high-profile hotels and shops including President Donald Trump's golf course Trump Turnberry.
The high-end scented handwash and candlemaker was waiting on payments from prominent customers, among them John Lewis, House of Fraser, the Caledonian Sleeper and the Royal Troon Golf Club when the business failed.
However, the amount or money it was waiting on would not have stopped the firm from sliding into financial difficulties, with administrators saying the decision to go into administration was down to a trading issue.
Arran Aromatics, which also made candles, gifts and bespoke products for several hotel groups including The Auchrannie Hotel & Spa on Arran, Cameron House and Cromlix, called in administrators early last month after being hit by the shopping downturn on the high street.
Almost immediately it was bought out by private equity investor Endless which announced it would retain more than 100 jobs and keep all shops open, including a new showroom recently opened on George Street in Edinburgh and an outlet in Glasgow's Buchanan Galleries, while rebranding the firm as 'Arran, Sense of Scotland'.
Details of the firm's financial health were revealed in documents filed with companies house by administrators KPMG.
They reveal that the total owed to the company by firms scattered across Scotland was £182,436.
The statement of affairs also discloses a list of creditors, who include the local Arran Dairies, ferry company Caledonian MacBrayne, the Forestry Commission and both Edinburgh and Dumfries and Galloway Councils.
A host of suppliers from packaging firms to fragrance specialists and even Arran Aromatics public relations consultants are also owed money, and will now most likely have to settle for some form of reduced payment, depending on the terms of the administration.
The soap and candle maker was set up by Janet and Iain Russell on the island in 1989, initially operating out of their cottage kitchen.
It grew to include six stores across Scotland with sales of £6 million per year, but had to bring in turnaround expert Iain Pittman to stabilise the business and clear its debts in 2009 after HMRC lodged a petition to wind up the company in respect of £180,000 of underpaid payroll taxes.
New owner Endless said manufacturing and retail operations will continue on Arran, where 32 people are employed at its manufacturing base, while former Crabtree & Evelyn head of Europe Jacqui Gale, who was appointed Arran Aromatics chief executive in August 2015, was also kept on.
Allan Caldwell, previously chief executive of Scottish Fine Soaps, was appointed chief operating officer.
All of Arran Aromatics products, including bath and body ranges, skin care, fragrances and scented candles, are still made and hand-finished in Scotland, before being sold in more than 30 countries.
Blair Nimmo, of KPMG, said there was no connection between the companies with outstanding bills and the company going into administration, which was linked to a wider trading issue.
He said: "In a company this sie there will always be creditors and people who owe money and who are owed money. It's just part of the normal cashflow of a business.
"If these companies had paid up, it would not have stopped the insolvency as the issues were way bigger than cashflow matters."
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