The Mighty Drinks brand will live on after administrators at the dairy-free milk alternatives business secured a sale to The Mighty Kitchen.
Recovery specialist Interpath took charge of Leeds-based Watkins Drinks Ltd, trading as Mighty Drinks, in June after the company failed to find the funding it needed to survive as a going concern.
Joint administrators James Clark and Howard Smith mothballed the business following their appointment and retained a small number of staff to assist with an asset realisation strategy.
After a marketing process, Interpath agreed a deal to sell the intellectual property of Mighty Drinks, as well as some stock, to The Mighty Kitchen, an unrelated business supplying plant-based protein products to the hospitality industry.
The Mighty Kitchen was launched in 2019 and has operations in Cyprus, Greece, UAE and the UK.
Three remaining Mighty Drinks’ staff have been retained by the administrators for a short period of time to assist with the transfer of the brand to the acquirer.
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“We’re pleased to have secured a sale of the Mighty Drinks brand to The Mighty Kitchen, ensuring the continuation of a well-regarded name in the plant-based sector,” Clark said.
“The transaction provides a platform for the brand’s future and the opportunity for the purchaser to exploit the brand overseas. We wish the team at The Mighty Kitchen every success as they take the brand forward and pursue their mission to integrate plant-based products into food culture.”
Mighty Kitchen CEO George Vou added: “This is exciting for us. We’re proud to be able to pick up such a well-crafted brand and to make good use of the work that the team at Mighty has already done.”
Interpath is now focused on selling the remaining assets and winding up the administration.
Mighty Drinks was founded by brothers Tom and Nick Watkins in 2019, with its range of pea and oat-based milks sold nationwide at supermarkets and health stores.
It was hit by a number of challenges prior to the administration, including spiking costs and falling demand as consumers reined in spending.
At the time of the administration, Interpath said the difficulties had impacted the business’s ability to scale and achieve profitability.
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