Swansea-based vaping business Lumo Liquids Limited enters administration

A Swansea-based company that manufactures vaping products has gone into administration.

International audit, tax and advisory firm, Mazars has been appointed as Joint Administrator of Lumo Liquids Ltd who manufacture and sell e-liquid vaping products.

The company, which was incorporated in 2014, was a joint venture between the previous owners of the 10 Motives e-cigarette brand and a South Wales pharmaceutical and medical packaging company.

Lumo Liquids focuses on mixing nicotine solutions and e-liquids, making white brands for others and filling devices and cartridges.

With a portfolio of established vaping brands, proprietary and in-house developed product formulas, blue chip customers, such as British American Tobacco and modern production lines, the company experienced a sustained period of considerable growth and success. 

However, following the decision of two customers to move their manufacturing and supply chains to mainland Europe, the Lumo Liquids lost key contracts that represented over 85% of revenues.

The resulting loss of sales could not be replaced quickly enough to stem the trading losses and the Directors concluded that an orderly sale of the business should be pursued under the protection of an Administration moratorium.

Mark Boughey and Conrad Pearson of Mazars were appointed as Joint Administrators by the Court on 18 November 2022.

The business is continuing to trade and Mazars are seeking a buyer for all or part of the Company’s business and assets.

Mark Boughey, Joint Administrator, said: “The core business, strong brands and production facilities are likely to be attractive to competitors and other interested parties. Accordingly, we continue to trade the business and we are actively seeking a buyer for all or part of the Company’s business and assets. Interested parties are asked to contact Mark Boughey or Nick Clarke at Mazars for further information”

(Lead image: Lumo Liquids)