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08
Jun 2023
Suppliers owed £3m after Black Sheep Brewery sale
Creditors were owed nearly £3 million after the sale of Masham’s Black Sheep Brewery, administrators have revealed.
In a report, Teneo Financial Advisory said that both HMRC and unsecured creditors are not expected to receive any money back.
The news comes after Black Sheep was sold to London Investment firm Breal Capital for £5 million on May 26.
The deal was a 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”.
The decision to sell the company came as Black Sheep’s sales fell from a high of £19 million in 2019 to £14 million last year, which resulted in a £1.6 million loss.
Administrators said the company’s performance “suffered during covid pandemic and trading challenges continued as a result of the current economic environment”.
Black Sheep made use of government schemes such as the Coronavirus Business Interruption Loan Scheme and Recovery Loan Scheme. It also made a business interruption insurance claim and increased supply to supermarkets and through its e-commerce platform.
But, the report added:
Creditors not expected money back
Teneo Financial Advisory was appointed to oversee the affairs of both Black Sheep Brewery and its retail arm BSB Retail Limited.
The report by Teneo shows that HMRC was owed £1.3 million in VAT, PAYE, student loan repayments and national insurance contributions.
Meanwhile, unsecured creditors, which include traders and suppliers, were owed £1.3 million.
However, administrators said neither are expected to receive any money back.
A total of 376 creditors across both businesses are listed in the report.
Among those owed money are suppliers and packaging firms, including London-based Sustain Drinks Packaging which is owed £33,888.
Read more:
- London investment firm buys Masham’s Black Sheep Brewery
- Masham’s Black Sheep Brewery to enter administration
Among the highest was Simpson Malt, based in Berwick-Upon-Tweed, which was owed £83,495.
Meanwhile, staff at Black Sheep, known as preferential creditors, have already been transferred over to the new company following the purchase.
The Stray Ferret has approached Black Sheep Brewery for comment on the administrator's report.
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