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02
Sept
Creditors to lose millions after Masham brewery administration
HMRC and creditors are not expected to receive any money after a Masham brewery entered administration for a second time in less than four years.
Great British Drinks Company bought Black Sheep Brewery as part of a £6.5 million deal in January after its parent company, Keystone Brewing Group, filed multiple notices of intention to appoint administrators late last year.
The move saved 145 jobs and included the acquisition of other brands including Purity Brewing Co, Brew By Numbers, Brick Brewery, North Brewing Company, Magic Rock Brewing and Fourpure Brewing Co.
However, a progress report by administrators FPR Advisory published on Companies House this week reveals HMRC and trade creditors are not expected to receive any money following the administration.
According to the report, HMRC has a claim of £1,011,074 from Black Sheep for outstanding VAT and PAYE.
However, the report said it is anticipated there will be “insufficient funds” to distribute money to creditors, such as HMRC.
The administrators added that trade creditors are owed over £2.2 million from Black Sheep while its sister brands owed traders a further £745,786.
But the report added:
It is estimated that there will be insufficient funds to enable a distribution to unsecured creditors.
Meanwhile, the Secure Trust Bank, a commercial bank which gave the group working capital and was its largest creditor, is owed £8.6 million.
Administrators said £3.3 million had been distributed to the bank so far and more money is expected to be paid back. However, the report said it was “uncertain” how much more would be paid at this stage.
Challenging trading conditions
The move comes after Keystone filed multiple notes of intention to appoint administrators late last year.
Anthony Collier and Martyn Rickels, of FRP Advisory Manchester, completed the pre-pack sale of Keystone and its assets to Great British Drinks Company as joint administrators.
The administrations said Keystone had faced “increasing financial pressure as a result of challenging trading conditions across the brewing and hospitality sector”.
Black Sheep Brewery was founded in 1992 by Paul Theakston, a member of Masham’s Theakston brewing family. He left his family's business, T&R Theakston, to start his own independent brewery, becoming the “black sheep” of the family – hence the brewery’s name.
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