Durham Distillery has announced it has been required to cease operations effective yesterday, following a notice to vacate its production facility issued by its landlord, the Town of Ajax.
Durham Distillery is located at 25 Mill Street in Ajax.
It said in January, the town provided 30-days’ notice requiring Durham Distillery to vacate the premises. As a federally bonded distillery operating under strict Canada Revenue Agency (CRA) and excise regulations, the company says relocation is not a simple move.
The move requires extensive regulatory approvals, specialized infrastructure, controlled transfer of bonded inventory, and significant advance planning. Unfortunately, the timeline provided made compliance and continuity of operations unfeasible.
Month-to-Month Lease
The town said when the distillery’s three-year lease expired in December 2024, the town stated that they permitted Durham Distillery to continue operating on a month-to-month basis for the entirety of 2025.
The Town of Ajax clarified that the tenant was made aware during this period that the lease would not be extended, and on January 5, 2026, they were issued a formal legal notice informing them of the town’s intention to reassess the facility’s use.
The Durham Distillery statement said despite efforts to engage in constructive discussions with the town’s representatives, including their Ottawa-based legal counsel, a workable path forward was not reached.
Alcohol Inventory
It said the town has taken possession of the distillery’s alcohol inventory, which introduces further regulatory complications and uncertainty regarding the company’s ability to resume operations elsewhere.
The Town of Ajax said it has communicated that the tenant is welcome to make arrangements with staff to retrieve business equipment and products from the facility at their convenience.
The Ajax statement pointed out that the town is both financially and ethically responsible to ensure its facilities are used in the best interests of Ajax taxpayers.
The Background
In 2022, the town began working with Durham Distillery to support the establishment of a fully operational distillery at 25 Mill Street to enhance the vibrancy of the Pickering Village.
Durham Distillery said it was founded with a vision to create more than spirits — it built a gathering space for the community. “This is not just the loss of a facility,” said spokesperson Chris Ferg. “It impacts local jobs, our hospitality partners, the charities we support, and the many residents who have celebrated milestones within our walls.”
Ticket Refunds
The distillery has partnered with local restaurants and bars across Durham Region and contributed to numerous charitable initiatives.
While operations have ceased for now, the team is actively evaluating options for the future.
Meanwhile, customers who purchased tickets for upcoming Cocktail Experience events will be contacted regarding reimbursements in the coming days, the distillery stated.
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