Grand Ridge and Black Hops are the latest two independent breweries to enter into voluntary administration. The two new notices bring the total tally count to at least eight in the first quarter of 2024 alone.
“Today the BH board have made the tough decision to place the business into Voluntary Administration,” said Black Hops in a social media post addressing fans.
“Trust us when we say it hasn’t been an easy decision to make, however our circumstances have meant there was no alternative.”
Since opening up its doors in 2014, Black Hops has grown considerably to become one of Australia’s most prominent craft breweries and currently employs 70 staff.
Deloitte Financial Advisory Administrators David Mansfield and Timothy Joseph Heenan have been appointed to handle the process.
“Our beer will still be made and sold through our direct outlets and our retail partners, and our taprooms will still be open and serving food. So please get around us at this point in time and support our taprooms and retail sales,” continued Black Hop’s statement.
‘We will be working towards successfully getting through to the other side of this restructure with a stronger business that ultimately keeps Black Hops serving our epic beers and keeps all our amazing staff on board.”
Grand Ridge, the oldest independent brewery in Victoria, has also begun the process of voluntary administration. Similar to the other breweries that have already fallen to economic pressures year, Grand Ridge’s administration was reportedly caused by rising costs, increasing taxes, and accumulated ATO debt.
Grand Ridge has appointed Mackay Goodwin administrators Richard Lawrence and Mitchell Ball to oversee the financial restructuring of the business. The details of its first meeting of creditors can be found in this ASIC notice.
Another trend that has resulted from ongoing economic pressures on Australian brewers has been the number of breweries appointing restructuring practitioners to improve economic viability. According to ASIC’s published notices, Rebellion Brewing Co, owner of O’Brien Beer, appointed a restructuring practitioner on Wednesday 3 May, following on from recent similar appointments by Malt Brewing Co, (Revel Brewing) and Howler Brewing Co.
To understand more about the causes behind craft beer’s current economic crisis, read the following interview with CEO of the Independent Brewers Association, Kylie Lethbridge.
