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:

“The Breal Group acquired the assets, out of administration, to secure the business for the long-term and this has saved the jobs and futures of the people that worked there.

“Black Sheep is a significant employer within the town of Masham, this deal has prevented what could have been a local employment catastrophe.”

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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:

“We do recognise that this is a difficult time for all shareholders and stakeholders alike, while the industry continues to face challenging times. 

“In the last 12 months, 45 breweries entered insolvency in the UK, a three-fold increase on the previous year, as the cost-of-living crisis has squeezed household disposable income.

“This has had an extreme and adverse effect on all brewers’ sales, at a time when their own costs and inflation are high. Black Sheep has not been immune to these factors, leading it to the administration process. It is highly likely that many more will follow in the coming months.”

Talks to buy Masham’s Black Sheep Brewery reported to be underway

A London investment firm is in talks to buy Masham’s troubled Black Sheep Brewery, according to media reports today.

The brewery, which employs about 50 staff, said last week it intended to appoint administrators after being hit hard by covid and rising costs.

Sky News reported Breal Capital has emerged as the leading contender to acquire the company, which was founded in 1992 by Paul Theakston.

Sky News said “other bidders remained in contention to acquire the business, and that a deal with Breal was not yet certain”.

It added the brewery asked interested parties to table offers by last Friday, and cited a pre-pack administration as one possible outcome.

Breal Capital is part of Breal Group, which did not respond to the Stray Ferret’s request for comment today.

Charlene Lyons, Black Sheep Brewery’s chief executive, said last week:

“The business has been hit very hard by the pandemic and the sudden rise in all costs.

“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.”

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