The North Yorkshire brewer and pub operator’s board resolved to file a notice of intention to appoint Kristian Shuttleworth and Clare Boardman of Teneo Financial Advisory Limited as administrators.
Black Sheep Brewery last month recruited Teneo as its financial adviser as part of a “strategic review” to explore funding options with a view to take the business forward amid prevailing economic conditions.
The company’s chief executive and chair Charlene Lyons explained the decision was taken to “protect the business and its creditors”.
Achieving continuity
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.
“Black Sheep Brewery has great products, a compelling brand and is supported by a dedicated team of people who are capable of delivering great results for the business in a different structure.
“We are focused on achieving continuity of the business and employment and thank everyone for their support so far.
While the firm is no longer seeking a possible acquisition, as stated when the review was commenced, it is still considering the “sale of the business and assets of the company”.
Perfect storm
A statement from the award-winning Masham-based brewery detailed no shares would be traded on Asset Match until further notice and that an auction previously scheduled for Wednesday 24 May 2023 had been suspended.
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.”
