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09
Jun 2023
Sale of Black Sheep Brewery prevented 'local employment catastrophe', says CEO
The sale of Masham’s Black Sheep Brewery prevented a “local employment catastrophe”, the company’s chief executive has said.
Charlene Lyons, who has been kept on in her role following the sale of Black Sheep, warned that other breweries faced administration amid the current economic climate.
It comes as administrators Teneo Financial Advisory revealed in a report this week the company suffered significant sale losses during the covid pandemic.
The report said sales fell from a high of £19 million in 2019 to £14 million last year, which resulted in a £1.6 million loss.
It added the company’s performance “suffered during covid pandemic and trading challenges continued as a result of the current economic environment”.
Ms Lyons said the sale of the company to Black Sheep Brewing Company Ltd, which is owned by London investment firm the Breal Group, helped to save jobs.
She said:
Read more:
- London investment firm buys Masham’s Black Sheep Brewery
- Suppliers owed £3m after Black Sheep Brewery sale
The deal saw Black Sheep sold to Breal Group for £5m on May 26.
It was part of a pre-packaged sale and the appointment of administrators, which the company said was “essentially to give protection to the companies and prevent any person taking action against it”.
It also left creditors, including HMRC and suppliers, owed nearly £3 million - money which administrators don’t expect them to get back.
But Ms Lyons said breweries across the country faced “challenging times” amid high inflation and the cost of living crisis.
She added that it was likely that more breweries would enter administration this year.
Ms Lyons said:
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