Masham-based Black Sheep brewery to go into administration

The move follows the brewery saying it has launched a "review of its strategic options" on April 11, which included a potential sale.

Then, last Thursday, the Masham-based business said its shares were no longer for sale, but a sale of the business and assets would be considered.

Black Sheep brewery of Masham announces 'strategic review'

Today, Black Sheep said it's board has resolved to file a notice of intention to appoint Kristian Shuttleworth and Clare Boardman of Teneo Financial Advisory Limited as administrators to the Company and BSB Retail Limited.

The Board is taking this action to protect the interests of its creditors.

No shares will be traded on Asset Match until further notice and an auction scheduled for Wednesday May 24 has been suspended.

Charlene Lyons, chief executive and executive chair of Black Sheep Brewery, said: "The directors have done their utmost to deliver new investment into the existing corporate structure. This has not been possible, but we are progressing with our discussions around a sale of the business. 

"Black Sheep Brewery has great products, a compelling brand and is supported by a dedicated team of people who are capable of delivering great results for the business in a different structure.

Black Sheep Brewery is no longer for sale, says trading update

"We are focused on achieving continuity of the business and employment and thank everyone for their support so far. We have taken the decision to protect the business and its creditors, during this period, by filing a notice of intention to appoint administrators.

Charlene further explained: "The business has been hit very hard by the pandemic and the sudden rise in all costs. Covid loans were useful but, in the end, could not sufficiently compensate for reduced cash flow in the long term.

"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.”