Black Sheep brewery in Masham is set to enter administration. The North Yorkshire brewery announced it was calling in administrators, blaming “a perfect storm” of Covid-19 and growing expenses.
The action comes after the brewery announced on April 11 that it had started a “review of its strategic options,” which might have included a sale. Black Sheep Brewery is a family-run craft brewery located in the market town of Masham, North Yorkshire, England.
Established in 1992, the brewery has gained a reputation for producing high-quality, award-winning ales using traditional methods and locally-sourced ingredients. The brewery’s flagship beer, Black Sheep Ale, is a best-seller and has become a staple of pubs across the country.
The brewer also offers a range of other beers, including a lager, IPA, and porter, as well as seasonal and limited-edition brews. The brewery is open to visitors and offers tours and tastings, allowing beer enthusiasts to learn about the brewing process and sample some of the brewery’s finest creations.
Then, on last Thursday, the Masham-based company declared that while its shares were no longer up for grabs, a sale of the company and its assets would be taken into consideration.
Black Sheep’s managing director, Rob Theakston, was forced to acknowledge that cost concerns left the brewery with little choice but to implement price rises back in February after the firm was left with no choice but to hike beer prices 19.5%.
The action follows closely on the heels of the brewery’s 11 April “review of its strategic options,” which included a potential sale as one option.
According to sources, Black Sheep said on April 27 that its shares were no longer for sale but that a resale of the company and its assets would be taken into consideration.
Teneo Financial Advisory Limited appointed as administrators to the Company and BSB Retail Limited
Black Sheep announced today that its board has decided to file a notice of intention to appoint administrators to the Company and BSB Retail Limited by appointing both Kristian Shuttleworth and Clare Boardman of Teneo Financial Advisory Limited as administrators.
To safeguard the interests of its creditors, the Board is taking this step.
Until further notice, no shares will be exchanged on Asset Match, and the auction that was supposed to take place on May 24 has been postponed.
The board have made every effort to bring fresh investment into the current business framework, according to Black Sheep Brewery CEO and Executive Chair Charlene Lyons. Although this hasn’t been possible, our discussions regarding a business sale are moving forward.
“Black Sheep Brewery has excellent goods, a strong brand, and is backed by a committed team of individuals who can produce excellent outcomes for the company in a different structure.
“We appreciate everyone’s support thus far and are focused on maintaining the business and jobs. We have made the choice to file a notice of intention to appoint administrators in order to safeguard the company and its creditors at this time.
Charlene continued, “The epidemic and the abrupt increase in all expenditures have had a very negative impact on the firm. Covid loans were helpful, but ultimately they were unable to make up for a long-term decline in cash flow.
It has been the “perfect storm,” but the team is sure that Black Sheep will prosper and expand under the new structure as they chart a new course
According to Lyons, Black Sheep Brewery has excellent products, a strong brand, and a committed team of employees that are capable of producing excellent outcomes for the company even under diverse circumstances. We appreciate everyone’s assistance thus far and are concentrated on maintaining the business and jobs. We have made the decision to file a notice of intention to appoint administrators in order to protect the company and its creditors during this time.
“The business has been very hard hit by the pandemic and the sudden rise in all costs,” complained Lyons. Covid loans were helpful, but ultimately they fell short of long-term needs to make up for lost cash flow.
Paul Theakston created Black Sheep in 1992, and his sons Jo and Rob Theakston have now taken over management of the company. The company also operates four pub locations in Yorkshire.
Black Sheep company senior brand manager Jack Scott Paul asserted in September during a Cask Seminar that “at Black Sheep, we do believe we are on the cusp of the cask beer revolution,” making the news from Masham all the more upsetting to the crew and fans of the company.
With over three decades of experience in the business and turnaround sector, Steve Jones is one of the founders of Business Insolvency Helpline. With specialist knowledge of Insolvency, Liquidations, Administration, Pre-packs, CVA, MVL, Restructuring Advice and Company investment.