A few months ago, Toronto distillers voiced their urgent concerns over a new Ontario tax that would put them out of business.

Now it seems the tax has taken its toll as Toronto Distillery Co. in the Junction has closed its doors.

The distillery had received significant press for its locally-made single-grain whiskies, organic dry gin as well as its unique beet spirit.

In 2012, it became Toronto's first distillery to open since Prohibition times. Along with Yongehurst it was often cited as heralding Ontario's new craft-spirits revolution.

According to a posting on the Toronto Distillery Co.'s website, it was the unfavourable provincial taxes that ultimately did them in. In December, the Ontario government imposed a 61.5% sales tax on distillery retail stores - a tax the owners felt made it hard to turn a profit and fund future growth.

Now, according to the Ontario Beverage Network, two full time and three part time employees have been laid off but the distillery still hopes to produce some spirits through a third-party distillery.