UK brewer Black Sheep Brewery is to appoint administrators having failed to attract new investment.
The decision follows the company’s “review of strategic options” in early April when it considered a potential sale. A new statement today (2 May) clarified that an auction of the company’s shares was supposed to take place but fell through.
Last week, the Yorkshire-based brewery revealed it was no longer looking to sell the company’s shares after attracting no offers. However, it is still considering a sale of the business and assets of the company.
The latest statement from Black Sheep Brewery said the company is to hire Kristian Shuttleworth and Clare Boardman of Teneo Financial Advisory as administrators.
The statement said: “On 27 April 2023, the company made a further announcement explaining that it was no longer seeking an acquisition of the entire issued share capital of the company, but it was still considering a sale of the business and assets of the company.”
The statement from the board added that this decision was made “to protect the interests of its creditors”.
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By GlobalDataThe company added “no shares will be traded on [equity shares platform] Asset Match until further notice” and that “the auction scheduled for 24 May 2023 has been suspended.”
CEO Charlene Lyons said that the pandemic and rising costs had led the company to its current situation.
According to York Press, she said: “The directors have done their utmost to deliver new investment into the existing corporate structure. This has not been possible, but we are progressing with our discussions around a sale of the business.
“We are focused on achieving continuity of the business and employment and thank everyone for their support so far. We have taken the decision to protect the business and its creditors, during this period, by filing a notice of intention to appoint administrators.”
Lyons added: “The business has been hit very hard by the pandemic and the sudden rise in all costs. Covid loans were useful but, in the end, could not sufficiently compensate for reduced cash flow in the long term.
“It has been the perfect storm, but the team are confident that with a new structure Black Sheep will thrive and grow as the team set course in a new direction.”
Founded in 1992 by Mark Theakston, Black Sheep Brewery is run by his sons Jo and Rob.
