Mighty Drinks: Administrators appointed to Leeds-based alternative milk brand

A spokesman for Interpath described Mighty Drinks as one of the UK’s fastest growing dairy alternative brands, with a specialist range of pea protein and oat milks.

Its products are sold nationwide from supermarkets and health stores, the statement added.

The statement added: “In common with a number of other companies across the plant-based food sector, the company had faced trading headwinds in recent years, including rising costs and the impact of fragile consumer confidence which impacted its ability to scale and ultimately, achieve profitability.

"In response to these challenges, the directors of the company sought to explore the investment options available to them, but when it became clear that a solvent outcome was not possible, they took steps to file for the appointment of administrators.”

In a statement, Tom Swiers, Food and Drink sector lead at Interpath, said: “There has been an increasing focus on profitability within all aspects of the ‘alt’ category, following the investment boom of a few years ago.

"It is no longer simply a case of, ‘growth as number one priority’."

Mr Swiers added: “The Mighty team has created a great product, with an exciting kids-milk range set to launch with retailers given the allergen free benefits of pea-protein, and a path to profitability from improved margins and increased volumes.

"Unfortunately, however, this has come at a point in the company’s cycle where it required further investment which was not forthcoming from typical investors in this space, nor was it attractive to typical ‘special situations’ investors given the relatively early stage of the company’s development.”

James Clark, managing director at Interpath and joint administrator, said: “We will now work with the company’s stakeholders to explore the options available, including seeking offers for the business and its assets, including the Mighty brand and related intellectual property.

"We would invite any parties who may be interested in acquiring the business to make contact with us as soon as possible.”

Interpath supports clients with the provision of advisory and restructuring services.

It employs 1,000 people in 28 locations across the UK, Ireland, France, Germany, Spain, Austria, Hong Kong, Bermuda, Cayman Islands and Algeria.