Top Shelf Clears $3.2M ATO Debt After $8M Campbellfield Asset Sale
Top Shelf International Holdings has completed the sale of its Campbellfield production assets for $8 million, fully settling its ATO excise liability and advancing its financial restructuring.
- Campbellfield production assets sold for $8 million
- ATO excise liability of $3.2 million fully repaid
- Remaining proceeds directed to reduce other debts
- Co-packing arrangement with Idyll Wine Co now active
- Whisky maturation and warehouse facility at Somerton retained
Asset Sale Marks Major Step in Restructuring
Top Shelf International Holdings Ltd has taken a decisive step in its ongoing financial and operational overhaul by completing the sale of its Campbellfield production facility assets to Idyll Wine Co Pty Ltd for $8 million. This transaction not only injects much-needed liquidity but also enables the company to fully extinguish its outstanding excise tax liability with the Australian Taxation Office (ATO), a significant burden that had weighed on its balance sheet.
Debt Reduction and Operational Shift
Of the $8 million proceeds, $3.2 million was allocated to settle the ATO excise debt in full, reflecting a total repayment of $4.8 million when considering prior payments. The remainder is earmarked for reducing other outstanding debts, including obligations to senior secured lender Longreach Credit Investors. This financial manoeuvre is a critical component of Top Shelf's broader cost reduction program aimed at stabilising its capital structure and improving operational efficiency.
Production Strategy and Facility Retention
The sale encompasses all operational and production assets at Campbellfield, including canning and bottling lines, brewhouse, distillery, and a portion of excess bulk whisky inventory. However, the company retains its whisky maturation and warehouse facility at Somerton, signalling a strategic focus on core maturation processes. Additionally, Top Shelf has entered a co-packing arrangement with Idyll Wine Co, ensuring continuity in the production of its branded spirits despite the divestment of physical assets.
Looking Ahead
Chairman Julian Davidson highlighted the sale as a pivotal milestone in the company’s restructuring journey, with further capital, debt, and operational changes expected to be announced progressively. While the immediate financial benefits are clear, the long-term impact on production capacity, brand positioning, and market competitiveness will be closely watched by investors and industry observers alike.
Bottom Line?
Top Shelf’s asset sale clears a major hurdle, but the full picture of its restructuring remains to unfold.
Questions in the middle?
- How will the co-packing arrangement affect Top Shelf’s production costs and margins?
- What are the details and timelines of the remaining capital and operational changes?
- How will retaining the Somerton maturation facility influence the company’s product quality and brand identity?