Top Shelf International (TSI) has announced a strategic restructuring of the business following the successful completion of its capital raise and sale of its Campbellfield facility, which will see CEO Trent Fraser step down as CEO, following a six-month transition period.
That transition period commences today, and Board Chair Julian Davidson has been appointed Acting Executive Chairman.
The successful completion of the Campbellfield sale to Idyll Wine Co for gross proceeds of $8m has also enabled TSI to clear the $3.2m of outstanding debt obligations with the Australian Taxation Office. The remaining balance of the total $8m in proceeds will be applied towards reducing other debts.
As part of this transaction, TSI said the business will undergo a strategic restructure aimed at positioning TSI for long-term growth and improved efficiency. Additional announcements are anticipated to be made over the coming days and weeks, setting out the ongoing strategic direction of the company.
In announcing that Fraser will be stepping down, Davidson thanked Fraser for his years of service and his significant contribution to the Company.
“On behalf of all at Top Shelf, I would like to thank Trent for his years of leadership at the Company, and his hard work to see the Company through a difficult period.
“The Board and I wish Trent all the very best in his future endeavours, and look forward to a smooth transition to a new leadership structure over the next six months.”
Fraser added “I am really pleased to have been able to contribute to the development and evolution of TSI over recent years, and particularly to bringing the vision of Australian agave to life.
“As Top Shelf transitions to a new stage in the life of the business, it is an appropriate time hand over the reigns, and I look forward to ensuring over the course of the coming transition period that the Company is well-placed to succeed in the future.”
The sale of is production facility includes all operational and production assets at Campbellfield, inclusive of its canning and bottling lines, brewhouse and distillery and a small portion of its excess bulk whisky inventory, but excludes the Company’s whisky maturation and warehouse facility at Somerton.
Davidson said: “Completion of the Campbellfield sale transaction is a significant milestone in the cost reduction program being rolled out by the Company, allowing full repayment of ATO debt and for some repayment to senior secured lender, Longreach Credit Investors, a key step in the of the ongoing financial and operational restructuring of the business.
The agave farm in North Queensland which produces Act of Treason will continue to be operated by TSI.
“Further details of other capital, debt and operational changes will be progressively announced to the market as they are finalised.”
TSI also re-iterated to the trade that through all of these internal changes it remains business as usual across all operations adding that there will be no disruption to supply through any channel.