The owner of online drinks retail and wholesale group Spirit.Ed, previously 31Dover, has fallen into administration following a period of “difficult” trading and an inability to raise new funding.

The businesses affected, DMD Operations and Vanquish Operations, owned drinks e-commerce site Spirit.Ed and ran subscription businesses The Gin Club and previously Off the Still, as well as drinks wholesalers Vanquish and OnStock.

The companies appointed Colin Hardman and Clare Lloyd, partner and associate director of Smith and Williamson as joint administrators last week.

Hardman commented: “Following a period of difficult trading conditions, the companies’ management had attempted to find a new strategic funder. Whilst we understand that negotiations were at a very developed stage, ultimately they were not successful.

“The joint administrators will therefore be aiming to realise the best possible value from the business and assets, in order to maximise the return to the creditors.”

The Spirit.Ed online store is currently offline “undergoing maintenance”, while The Gin Club posted on Facebook it was ceasing to operate in March after almost four years due to “increasing sourcing issues”.

DMD Operations’ most recent accounts show the losses in its P&L account ballooned in the year to 30 April 2020 from £299k to £15.5m as Covid hit the leisure and hospitality industry.

David Elghanayan and Jimmy Metta launched 31Dover in 2012 and brought in former Naked Wines sales and marketing director James Bagley to run it as CEO in 2017. Bagley left the group in February 2020.

In November 2019, the company spelt out plans to raise over £500k via a crowdfunding campaign to value the business at around £45m as it targeted growing annual revenues to £30m from around £12m.

However, it ditched the potential £1m crowdfunding drive after failing to break £300k in its private phase before its public launch on Crowdcube.

Instead it vowed to pursue ““alternative routes” of investment.

The group rebranded from 31Dover to Spirit.Ed in late 2021.

One of the group’s key financial backers during its growth had been Bertrand Perrodo, part of one of France’s wealthiest families.

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