Highgate Brewery goes into administration

Midlands-based Highgate Brewery went into administration last week with debts to the taxman in excess of £1m.

The Publican​ has learned the brewer was simultaneously sold in a pre-pack deal for £80,000 by administrator Bob Gibbons of the firm Arrans to two property developers.

The move came after the Walsall-based group got into financial difficulties, including unpaid excise duty of more than £1m.

The business, renamed Highgate & Davenports Brewery Limited, has been bought by Simon Toon and David Lindol, described by Companies House documentation as property developers.

In its previous guise Highgate produced its own beers, including brands such as Davenports IPA, as well as contract brewing for Coors and Smiles Brewery. As the on-trade has contracted so the brewery has focused more on bottled beers, producing up to 15 different varieties.

Bob Norton, the existing managing director of Highgate Brewery, said he would remain in the role until a consultation process with the brewery's staff was completed.

"The company was taken over two years ago [by Birmingham-based pub group Global Star] but with the turn in the economy, the smoking ban and the rises in beer duty it became apparent that its overheads were unsustainable in the current environment," Norton said.

"It was decided to restructure the business, but the banks, both our own and others, were unwilling to support the group. There was no option but to go into administration," he added.

The brewery was currently in the middle of a consultation process and some redundancies among the 25 staff were inevitable, Norton said.

"I don't know if I will remain as managing director once this process is completed," he added.