December 14, 2020
The firm behind nicotine inhaler brand Voke has collapsed into administration, signalling the impact that the COVID-19 pandemic has had on some non-tobacco nicotine products.
Kind Consumer, the company which makes Voke products, called in administrators last week after a last-ditch attempt to raise £36 million to help it deliver a new business plan failed, Sky News reports.
Voke gained prominence as an MHRA-approved quitting aid that could be prescribed by GPs. Among the backers of Kind Consumer is investor Neil Woodford and former Tesco boss Sir Terry Leahy.
Administrators Smith & Williamson LLP will now look to find a new buyer for Kind Consumer though the Kind Consumer’s chief executive Alan Sutherland is understood to have warned shareholders that the likelihood of any return for them was ‘slim’.
The closure of vape shops and the UK hospitality industry for much of 2020 has put pressure on many vape suppliers. Imperial Tobacco released final year results last month which showed dramatic falls in sales and profits from vape products. The company is working on a new business strategy, details of which Vape Business understands will be shared next month.