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.”

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:

“However, demand did not recover to pre-covid levels and the companies also faced cost input inflation.

“As a result, the companies continued to experience cash flow difficulties.”

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.

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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.

Fears for rural transport as Masham and Ripon minibus service is scrapped

Councillors have expressed disappointment after a flagship on-demand bus service in Masham and Ripon is set to be scrapped.

Last week, North Yorkshire Council took the decision to end its YorBus pilot on June 30 over cost concerns.

It was revealed that the service carried just 14,208 passengers over 12 months, at an average cost per passenger of £15.57 across the year.

Cllr Keane Duncan, executive councillor for transport, said in a statement that the cost of the service was “significantly higher” than traditional routes.

However, some councillors have expressed disappointment that the on-demand service will no longer continue.

Felicity Cunliffe-Lister

Cllr Felicity Cunliffe-Lister.

Cllr Felicity Cunliffe-Lister, who represents Masham and Fountains division, said the bus was used by younger people in her area.

She said:

“I’m very disappointed. There were a lot of the younger generation using it.

“At the same time, it was expensive to run. It was using a lot of money. But it was not a great surprise and I don’t think it was ever to going to get to a break even point.

“However, I think it does demonstrate that there is a need for bus services in rural areas.”

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She added that she would like to see a community service introduced in the place of YorBus.

Meanwhile, Cllr Barbara Brodigan, who represents Ripon Ure Bank and Spa, described the decision as “regrettable but understandable”.

She added that the service was never going to survive in light of the council’s failed £116 million bid to government’s ‘Bus Back Better’ fund.

She said:

“Without government help this has had to be funded by the council. Usage peaked over last summer and then levelled off to about 2.4 passengers per hour, more passengers could possibly have made the pilot more cost effective.”

Cllr Andrew Williams, who also represents Ripon Minster and Moorside, added:

“It’s sad that the innovative idea has failed to take off but NYC can’t justify the continuation of a service which is costing a subsidy of £14 for each journey made, 

“I suspect that most council tax payers would think that was pouring money down the drain. We have tried to provide a service but residents have voted with their feet and simply not used it in sufficient numbers to justify continuing further.”

The Stray Ferret approached North Yorkshire Council to ask why the scheme was not scrapped within the first year given the running costs.

A spokesperson for the council said the pilot was extended to “explore options for wider rollout could be explored in more detail, including assessing potential zones and a review of the overall delivery model”.

Meanwhile, Cllr Duncan said that the authority would be reviewing initiatives to help rural transport.

He said:

“While continuing to work closely with operators to support at-risk services, we are also currently reviewing a number of initiatives to improve rural transport and asking the public for their views to help shape our future strategy.”

Axed bus service for Ripon and Masham cost £15.57 per passenger

A picture has emerged of the scale of losses sunk on the axed flagship rural bus service for Ripon, Masham and Bedale.

North Yorkshire Council announced last week it would abandon the YorBus on-demand bus service, which it had hoped to roll out to numerous rural areas poorly served by buses. The 14-seater minibuses will cease to operate at the end of the month.

The council claimed future transport services would be shaped by lessons learned from YorBus.

But councillors from across the political spectrum sounded a less upbeat tone about the outcome of the pilot at a meeting of the council’s Skipton and Ripon area constituency committee yesterday.

A report to councillors revealed Yorbus had seen a further £224,000 of taxpayers money pumped into it after disappointing first year figures.

Despite changes to try to improve uptake, the high-profile service carried just 14,208 passengers over 12 months, at an average cost per passenger of £15.57 across the year.

This is significantly higher than that for fixed timetable bus routes in the area which are around £6.50 per passenger.

Sustainability warnings

Within months of YorBus being launched, public transport experts had said it was unsustainable and needed a major overhaul to attract more passengers.

The authority’s hopes of extending demand-responsive transport were dealt a further blow last year when the government rejected the county’s £116m Bus Back Better bid in its entirety, citing a “lack of ambition” — a claim the council has rejected.

The committee heard how YorBus had often been seen driving around with few or no passengers. One Conservative member claimed following disappointing YorBus figures for the first year, officers had worked “to try and prove the concept”.

Cllr Andrew Murday

Cllr Andrew Murday

Cllr Andrew Murday, a Liberal Democrat who represents Pateley Bridge and Nidderdale,  questioned why the council had not abandoned the trial after the first year, adding:

“Obviously the project has failed and there are better ways of providing public transport.”

The meeting heard the trial had been extended for a further year largely to test if changes to the booking system improved take-up.

Councillors were told while the development of public transport was a key part of the council’s economic development plan, particularly to boost tourism, more rural bus services, including a regular service to the Yorkshire Dales gateway town of Grassington, were under threat.

Some councillors suggested the council should look to facilitate taxi or car-sharing through localised social media accounts before others pointed towards passenger safety concerns.

Residents ‘horrified by the cost’

Calling for more innovative solutions, Settle and Penyghent councillor David Staveley said:

“Most residents who don’t use these public service buses, and don’t have any inclination to, would be quite horrified by the cost per journey that this has incurred. It’s a lot of money that’s coming out of the public purse.”

However, other councillors argued the reason behind residents’ reliance on  cars was due to the lack of a sufficiently frequent and direct bus service.

The meeting heard villages without public transport were being “condemned to death”, as planning rules banned building “unsustainable” homes, while post-pandemic many of the county’s elderly residents had not gone back to using buses.

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Referring to the trial, executive member for culture and housing, Cllr Simon Myers, said:

“It’s regrettable it hasn’t worked, but somehow we have to change people’s attitudes to public transport. How do we encourage the public back to using the services that are there? That’s a real challenge.”

Helmsley Conservative councillor George Jabbour said he believed from next year the incoming mayoral combined authority would have the additional funding needed to invest in public transport.

Cllr Jabbour added:

“This experience should not make the council less bold in its drive to explore new creative and innovative ways to improve public transport in our county.”

Mashamshire Community Office close to financial target to purchase building

The Mashamshire Community Office (MCO) is on track to raise enough money to purchase the Old Police House — the building in which the charity is based.

In June 2022, the MCO was given the opportunity to purchase the building, located in the centre of Masham, for £215,000.

The building is owned by North Yorkshire’s Police, Fire and Crime Commissioner, Zoe Metcalfe, and has been leased to the charity since 2003.

Since the target was set last year, the town has seen multiple fundraising events held by volunteers – from 100 community clubs, to cow pat competitions – to generate the necessary funds, which now stands at £182,698.69.

The office provides information for visitors, hosts a number of activities for Masham residents and surrounding villages, and aims to introduce new initiatives in order to bolster the community as a whole.

Hayley Jackson, Mashamshire Community Office manager, said:

“Over the past 20 years MCO has diversified and adapted our offering to support the community in times of need such as through covid.

“This past year we’ve been on a journey to promote our services and actively share and shout about what we do and the difference we make.

“Individuals have come forward to make donations, offer help, and share stories of how MCO have helped them in the past.”

Ann and Hayley raising money for MCO

If purchased, the charity plans to invest in making the building a much more environmentally sustainable and energy efficient space.

Ms Jackson added:

“We knew it was important, but we’ve been able to see just how much it’s at the heart of the community and how much people care.  

“The people of Masham see it as their building, and it’s really important to them that we retain it for the future.”

The MCO is aiming to complete the purchase this August.

There is a number of fundraising events coming up to help the team get over the line, as well as a live auction to bid on prizes.

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North Yorkshire Council to axe YorBus service

North Yorkshire Council will axe the YorBus service next month nearly two years after it was launched.

The service, which operates between Ripon, Bedale, and Masham, was launched as a pilot scheme by the council in July 2021 to offer rural residents low-cost journeys on demand.

The service could be booked by residents via an app.

However, council officials have decided to axe the service as it had become too expensive to run. As a result, it will end on June 30.

The authority added that the cost per journey of YorBus was “significantly higher than the traditional, timetabled bus routes”.

The pilots costs around £230,000 to operate annually, but latest figures suggest YorBus journeys cost over twice as much as a scheduled service.

A YorBus service, which operates in Masham and Ripon.

A YorBus service, which operates in Masham and Ripon.

North Yorkshire Council’s executive member for highways and transport, Cllr Keane Duncan, said:

“We launched the YorBus pilot two years ago to enhance our existing public transport network.

“It has allowed us to gather valuable information about the costs and benefits of running a digital demand responsive bus service.

“Without sufficient additional funding being available to expand the service so YorBus can benefit residents across North Yorkshire, and with costs per journey remaining so high despite efforts to improve value for money, the pilot will come to an end as planned next month.”

When discussing the service coming to an end, he added:

“This will allow us to be fair to all residents and focus every penny of our limited resources on supporting bus services across the county at a time of unprecedented pressure.

“While continuing to work closely with operators to support at-risk services, we are also currently reviewing a number of initiatives to improve rural transport and asking the public for their views to help shape our future strategy.”

In 2022, the council bid for £116 million to improve bus services as part of the Government’s Bus Back Better scheme, but was unsuccessful. An expansion of the YorBus service was earmarked if the funding had been granted.

The two YorBus vehicles will be returned for use on other local bus services and drivers will be redeployed.

Earlier this week, the council launched the Let’s Talk Transport survey, asking residents to share their travel habits in hopes to develop the travel strategy for the coming decades.

Bus routes 136, 138, 138A, 139, 144 and 159 will continue to run, as well as alternative community transport operators in the area where YorBus ran.

Alternative travel options can be found here.

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Business Breakfast: Masham brewery agrees beer listing deal with Asda

It’s time to join the Stray Ferret Business Club. Our next networking event is after-work drinks at Manahatta, on May 25th at 5:30.

Don’t miss out on this chance to network with businesses from across the Harrogate district. Get your tickets by clicking or tapping here.

A Masham brewery has secured listings at 240 Asda stores for one of its popular beers.

T&R Theakston confirmed the deal with the supermarket giant to sell cans of its Old Peculiar pale ale.

The agreement will also see 140 Asda stores nationwide sell cans of Theakston Best Bitter.

The news comes as the brewery says it has seen a rise in demand for its beers.

Simon Theakston, joint managing director of T&R Theakston, said: 

“These two new listings are evidence of the continued strength of our portfolio. Theakston Old Peculier has continued to capture the attention of the country’s discerning drinkers, and we’re delighted that it is becoming more widely available as a result this growing partnership with Asda.

“Additionally, to see the increased off-trade success of Theakston Best Bitter speaks to a consumer preference for high-quality, handcrafted beers such as our own.”

Harrogate mobile company targets improved performance

A Harrogate telecommunications company is targeting improved performance amid a drop in revenue last year.

Mobile Tornado, which is based at Cardale Park, saw its reported turnover drop 12% from £2.59m in 2021 to £2.28 for the year ended December 31, 2022.

According to the company’s annual report, which was published in April, the loss of a customer in Canada accounted for 20% of total revenue and 10% of recurring revenues in the prior year comparative figures.

However, the firm said it now intends to improve its performance.

The company recently signed a deal with Leeds Bradford Airport, which will see it provide push-to-talk over cellular equipment for the airport’s workforce.

Jeremy Fenn, chairman of Mobile Tornado, said: 

“The board is fully committed to maintaining the technical advantages that have been established, at the same time driving a much deeper and wider business development operation.

“The outreach campaign that has been running since the start of the year has already generated a good flow of new partner and customer opportunities, many of them in new geographic markets. We believe that this momentum can be accelerated significantly if we can successfully deploy our solution into a public safety organisation.

“Our teams worked hard on multiple trials during the last 15 months and we are hopeful that we will very shortly see a successful conclusion with full platform deployment. This would represent a significant commercial breakthrough, and we are confident will lead to a material uplift in financial performance as we push towards profitability in 2023.”

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New tourism body ‘not in the interests’ of North Yorkshire, says Masham councillor

A councillor who owns Swinton Park Hotel near Masham has said a new tourism body for North Yorkshire is “not in the interests” of the hospitality sector.

Felicity Cunliffe-Lister, the Liberal Democrat councillor for Masham and Fountains, said an organisation should be created for the whole of Yorkshire instead.

Cllr Cunliffe-Lister was speaking at a full meeting of North Yorkshire Council on Wednesday.

The council is coordinating a new tourism strategy to boost the county’s £1.5 billion tourism industry, which is home to popular destinations like Castle Howard, Fountains Abbey and Bettys tea rooms.

A draft destination management plan is due to be finalised by the end of June before a bid is submitted to government to become a Local Visitor Economy Partnership, which would open the door for funding.

LVEPs are replacing destination management organisations, such as the former Harrogate Borough Council’s Destination Harrogate, following an independent review.

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Visit Hull and East Yorkshire was awarded LVEP status last month and Cllr Cunliffe-Lister said having more than one LVEP in Yorkshire risked wasting taxpayers’ money as LVEPs would compete against each other to attract tourists.

The councillor also referred to Welcome To Yorkshire, the tourism body for Yorkshire that entered administration in 2022 following a high-profile expenses scandal. It still exists but is no longer funded by public money and is now owned by private business Silicon Dales.

Cllr Cunliffe-Lister said:

“The Yorkshire brand is well-established and well-regarded nationally and internationally. It’s not in interests of the hospitality sector that this is fragmented.

“Should North Yorkshire achieve LVEP status it will not deliver value for money if it is then used to be pitched as a competitor destination against East Yorkshire or other regions in Yorkshire.

“What is being done to establish a generic county-wide brand that all regions will subscribe to and support and what steps are being taken to co-ordinate with other councils to achieve this?”

In response, Conservative executive member for open to business, Derek Bastiman, said “work is being carried out on that” but added it will take time as the council is still only in its second month of existence.

Cllr Bastiman added that workshops were taking place across North Yorkshire for people and councillors to add their input into the new tourism strategy. 

He added:

“It’s vitally important as much work is done on the coast as is done in the Craven area to Richmondshire or Selby.“

Speaking this month, Conservative council leader Carl Les called the development of the new tourism strategy a “major milestone“ for the authority. 

He said:

“We have such a breadth of tourism businesses and attractions which we can be rightly proud of, but we want to ensure that the sector can grow and flourish in the future and help support the region’s wider economy.“

Business Breakfast: Masham brewery hires new sales managers

It’s time to join the Stray Ferret Business Club. Our next networking event is after-work drinks at Manahatta, on May 25th at 5:30.

Don’t miss out on this chance to network with businesses from across the Harrogate district. Get your tickets by clicking or tapping here.

A Masham brewery has made two new appointments as part of growth at the company.

T&R Theakston has hired new recruits in its sales department.

Cameron Bell and Zak Spence have joined the brewery as sales development managers and will be tasked with focussing efforts on northern cities and North Yorkshire.

On joining Theakston, Mr Spence said:

“As a proud North Yorkshireman, I’m delighted to be working for such a well-known business which combines a strong heritage with exciting future focused plans.

“Taking over from Barry means I have some big shoes to fill but I am definitely looking forward to working with our customers to continue to deepen the strong relationships that he fostered.”

Mr Bell added:

“I’m looking forward to be working for Theakston and helping to drive forward its growth plans.

“There are plenty of exciting developments in the pipeline this year, which provide the perfect opportunity to increase awareness and availability of the brewery’s beer range across Northern cities and introduce our diverse range of products to new consumers.”

Simon Theakston, joint managing director at Theakston, said:

“We started 2023 with the announcement of growth within our team and, following a busy first quarter, we’re pleased to be further expanding as we look to deliver on our growth ambitions for this year and beyond.

“It’s wonderful to welcome both Cameron and Zak to our T&R Theakston family at such an exciting time for the business, as we prepare to launch more seasonal beers, announce new partnerships and continue to look toward to our bicentennial celebrations in 2027.”

Mercedes-Benz car dealer wins retailer award

A car dealership with an outlet in Harrogate has won an award for retailer of the year.

JCT600, which has a Mercedes-Benz dealership on Leeds Road, won the prize from the car manufacturer for outstanding performance.

The team at JCT600

The award was based on performance in car sales, customer service, approved used car sales, workshop retail hours and customer retention.

Gary Savage, chief executive and managing director, Mercedes-Benz Cars UK, said: 

“JCT600 performed consistently strongly across all areas of the business and the team’s collaboration was nothing short of outstanding, with remarkable engagement and positivity.”

Pictured above: Gary Savage, chief executive and managing director, Mercedes-Benz Cars UK; James Knowles, JCT600 Mercedes-Benz head of sales; Michelle Caveney, JCT600 Mercedes-Benz brand director; James Jarman, JCT600 Mercedes-Benz head of business – York; Joe Tordoff, JCT600 Mercedes-Benz head of business – Harrogate; and host, broadcaster Dermot O’Leary.

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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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