Black Hops Brewing is the latest in a series of breweries to enter voluntary administration, advising that the Black Hops Board had no alternative but to place the business into voluntary administration due to its current circumstances.
Deloitte Turnaround & Restructuring partners David Mansfield and Tim Heenan have been appointed voluntary administrators of the operations to facilitate a financial restructuring of the business, effective Thursday 28 March.
Mansfield said: “In these early days, we are taking over management of the business and commencing a review of its financial position. For now, the Gold Coast brewing and taphouse operations will continue to trade while we explore urgent sale options.”
Black Hops currently employs a total of approximately 70 staff across its operations, which includes a craft beer brewery and tap rooms business from locations in Burleigh Heads, Biggera Waters and East Brisbane in Queensland.
At this stage, the East Brisbane taphouse will be closed while options are considered to allow it to reopen, but the Gold Cost brewing and taphouse operations will continue to trade as normal.
In a statement on Instagram, Black Hops said: “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.
“To you, our supporters and loyal patrons, we thank you from the bottom of our beer glasses.”
In a post on LinkedIn, Black Hops Managing Director Nathan Hyde also commented on the situation.
“Yesterday was the biggest challenge I have faced in my professional world so far. To inform 70+ of the greatest people you work with, that the business had no choice but to enter VA (voluntary administration) is tough in anyone’s book,” he said.
“I won’t comment on the state of the business that was left to me back in February 23, as my integrity and personal values surpass this form of behaviour, but the team at Black Hops have worked tirelessly to change this business in the last year and they all deserve credit where credit is due.
“On to the team at Black Hops – I want to thank my senior team for their unwavering support and commitment. I also want to praise and thank the entire team at Black Hops. Throughout yesterday, the team were all supportive and behind the business trading through and getting to the other side. I am so proud and grateful for such a great team and thank everyone for their support and commitment to Black Hops – thanks everyone.”
The news follows a string of administration announcements made by craft breweries earlier this year under the pressure of similar financial strains. In January, Sydney’s Wayward Brewing Co. and its co-owned distribution business Local Drinks Collective announced that they were seeking financial restructuring to cope with adverse economic conditions facing the craft beer industry.
Just a month later, Hawkers Beer and Big Shed Brewing entered voluntary administration. Hawkers Beer said that the decision was made due to financial losses, restricted market access, increased production costs and legacy tax debt, while Big Shed referred to the impact of trading disruptions during Covid.
Each of the breweries have since emerged from administration following financial restructuring of the businesses.