Aromantic, which specialises in natural and organic beauty products, operates through its own website as well as online marketplaces such as Amazon and Shopify. The company provided oils, fragrances, and various ingredients, enabling customers to create their own creams, lotions, balms, toiletries, and spa treatments. Its clientele ranged from crafters to salon owners and beauty professionals.

Aromantic achieved a £1.1million turnover and was established in 1997 by Kolbjorn Borseth, who subsequently transferred control to his son, Benjamin.

The enterprise, situated at the Greshop Industrial Estate in Forres, Scotland, has now discontinued operations and entered administration.

Christopher Horner and Kevin Pinkerton, from the restructuring and insolvency practice Business Rescue Expert, have been appointed joint administrators of the Scotland-based Aromantic Limited.

The joint administrators have finalised the disposal of the company’s assets to an unrelated party, encompassing its stock, websites and online platforms.

All 11 staff members were made redundant immediately prior to the administration. Kevin Pinkerton noted that Aromantic had performed strongly throughout the pandemic, though sales subsequently diminished.

He stated: “The fall in revenue, combined with increasing raw material, shipping and employment costs, contributed to the business becoming insolvent.

“Aromantic took out short-term loans to keep afloat, but the repayment requirements had a material effect on its cashflow. Over the summer, the company sought our assistance to explore ways to keep the business going.

“Working with the director, we tried every avenue to enable Aromantic to continue trading or sell it as a going concern, but regrettably, a formal insolvency process was the only option.”

Aromantic has been contacted for comment.

Why do companies enter administration?

Firms can enter administration when they cannot pay their debts, a situation referred to as insolvency. Payments to creditors or anyone the company owes money to are frozen during this period.

Proposals to restructure the business are drawn up, and an administrator from a qualified accountancy firm assumes control. They manage operations until a new buyer can be found.

Creditors must be repaid as much as possible, typically by selling assets. Administration is a protracted process and can span several months.

A company may be placed into liquidation and closed down if there is no viable way to generate additional funds.