Fri, 04 Aug 2023 | BUSINESS SALE
True North Brew Co Ltd, a pub operator, brewery and distillery based in Sheffield, has been acquired out of administration by Cocktails and Craft Beers Ltd. The deal comes amid rising levels of financial distress in the UK’s crowded craft brewing industry.
As with many other hospitality businesses and breweries, True North had been impacted by COVID-19 and its associated lockdowns. Despite seeming to have recovered well from the pandemic, it was then hit by more recent headwinds, such as rising costs for food, labour and energy, as well as an overall decline in consumer spending.
In its accounts for the period from March 29 2021 to March 27 2022, the company reported turnover of £13.1 million, up from £3.7 million in the preceding year, while it cut its pre-tax losses from £1.3 million to £411,868.
Despite these improved results, the company, which operates a brewery and distillery along with 12 licensed venues throughout South Yorkshire, subsequently fell into administration. Interpath Advisory’s Howard Smith and Rich Harrison were appointed as joint administrators on August 2, immediately concluding a sale of the business and its assets to Cocktails and Craft Beers Ltd.
Interpath managing director and joint administrator Howard Smith said: "True North Brew Co's pubs and bars have long been a popular destination for customers across South Yorkshire, but the impact of lockdowns and hyperinflation have placed an enormous amount of pressure on the business.”
Smith added: "After exploring a number of options, we're pleased to have concluded this transaction which will see the continued operation of the Company's venues, brewery and distillery, and which importantly, safeguards over 300 jobs. We wish the management team all the best for the future."
Read more on the struggles facing the UK's craft breweries.
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