Durham Distillery Closes in Ajax Amid Legal Dispute with Town — What We Know So Far
Durham Distillery Ceases Operations Amid Legal Dispute with Town of Ajax
Durham Distillery has announced it is ceasing operations at its Ajax production facility effective February 12, 2026, following what it describes as a notice to vacate issued by its landlord, the Town of Ajax.
In a public statement, the distillery said it received 30 days’ notice in January requiring it to vacate the Town-owned facility. As a federally bonded distillery operating under strict Canada Revenue Agency (CRA) excise regulations, the company stated that relocating within that timeframe was not operationally feasible.
Bonded alcohol production involves regulated storage, controlled inventory transfers, federal approvals, and specialized infrastructure. According to the distillery, the timeline provided made compliance and continuity of operations impossible.
The company also stated that the Town has taken possession of its alcohol inventory, adding further regulatory complexity.
Operations have now ceased.
The Legal Layer
While the Town of Ajax has not issued a formal media release outlining its position, Regional Councillor Marilyn Crawford responded publicly to community inquiries, stating:
“It’s a lot more complicated than stated, however as this has gone legal I am unable to comment. This is certainly not the outcome we wanted.”
That comment confirms the matter has entered legal proceedings. When municipal disputes move into litigation, officials are typically advised not to speak publicly, which may explain the limited commentary from the Town at this time.
As of publication, no publicly searchable court filings appear through legal databases such as CanLII. This does not confirm that litigation does not exist — only that details are not yet publicly accessible.
Several questions remain unanswered:
What specific lease terms triggered the notice to vacate?
Was the notice issued for cause, non-renewal, redevelopment, or compliance?
Who initiated legal proceedings?
Is there a path toward resolution?
Until formal documentation or statements are released, the full context remains incomplete.
Community Impact
Durham Distillery has operated out of the Old Mill Street Firehall property in Ajax for several years under a municipal lease agreement. Beyond production, it served as a gathering space — hosting tours, tastings, charitable events, and partnerships with local restaurants and bars.
The sudden closure affects employees, hospitality partners, and suppliers across Durham Region.
Public reaction has been swift, with residents expressing disappointment and concern for small business stability in Ajax. Others have urged caution, noting that without access to the lease terms or legal filings, the full picture is not yet known.
What About LCBO Products?
Although production at the Ajax facility has stopped, Durham Distillery products remain listed through the LCBO retail system. Inventory already distributed through LCBO warehouses can continue to be sold unless regulatory action occurs or supplier status changes.
If production does not resume elsewhere, those products would eventually sell through existing inventory.
For community members looking to support the company during this period of uncertainty, purchasing Durham Distillery products currently available at LCBO locations is one practical way to provide support while stock remains on shelves.
What Happens Next
Durham Distillery has indicated it is evaluating options for the future and hopes its award-winning spirits can once again be produced within the region.
Whether this closure represents a temporary disruption or a permanent departure from Ajax will likely depend on the outcome of the legal proceedings now underway.
For now, the situation continues to develop.
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