UK beer group In Good Company has placed its Fourpure subsidiary into voluntary administration in an effort to “futureproof” the brand.
Fourpure signalled in March it was looking to manage its debts with creditors. As a result, In Good Company applied for a company voluntary arrangement for the registered entity Fourpure Limited.
The last accounts filed by Fourpure show a £3m ($3.1m) loss for the year ended 31 December 2021. It reported net current liabilities of £18m for that period.
The move into administration follows the announcement in August that In Good Company would shut its Fourpure Brewing production site in London, consolidating operations at a facility further north.
The brewing group said the decision will not impact any of In Good Company’s wider portfolio of brands. It will see the Fourpure brand “essentially continue to exist in the same way it does currently with its beers being brewed, canned and produced at Magic Rock”, according to a statement.
David Hudson and Phil Reynolds of business advisory firm FRP Advisory were appointed as joint administrators of Fourpure Brewing Co. on 1 October.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalDataHowever, since Fourpure had no direct employees, with its teams being part of In Good Company, there are no job losses resulting directly from the administration.
In Good Company CEO Steve Cox said: “We’ve had to make a number of tough decisions to protect the overall business, which includes moving Fourpure’s London brewing operations to its sister brewer Magic Rock in Huddersfield, and this month voluntarily filing for administration for Fourpure Ltd.
“Both decisions have been made to futureproof the brands and the wider business, as we look to maintain stability but also strive for ambitious growth targets. Anyone in the craft beer, drinks and hospitality sectors will be familiar with the current challenges of operating in this space, and we are determined to keep taking positive strides to safeguard In Good Company and its portfolio to allow for growth and innovation.”
Luke Wilson, partner at FRP, added: “While the closure of Fourpure’s Bermondsey brewery was a difficult decision for the board and IGC, it reflects the ongoing challenges in the craft brewing sector, in which we have seen an increase of restructuring activity.
“Our focus now is on securing the best possible outcome for Fourpure’s creditors by seeking to realise the value of its remaining assets and IP, including exploring the potential of a sale.”
Fourpure was owned by Japanese giant Kirin Holdings from 2018 to 2022. In January 2022, Kirin launched a review of its UK operations, with its Lion subsidiary selling the assets under the In Good Company umbrella seven months later to Odyssey Inns, a vehicle set up to conduct the acquisition.
