One of Australia’s most popular craft breweries, Black Hops Brewing, has been saved from liquidation by a consortium of “previous investors and passionate supporters”.
The Gold Coast-based brewer has been in administration since late March. Deloitte published a report on May 7 outlining the business was burdened by debts to creditors of more than $7 million. According to the administrator’s preliminary analysis the brewery could have been trading while insolvent for 18 months.
The administrators said: “As there is no proposed DOCA [Deed of company arrangement] and we do not recommend the administration ends as the Company is insolvent, we are of the opinion that it would be in the creditors best interests that the Company be wound up.”
However, the sale to the consortium has averted the brewery going into liquidation.
Black Hops took out the number one spot in the 2022 Australian Craft Beer Survey by Beer Cartel, which named the country’s top 10 breweries. ItsBlack Hops Brewery G.O.A.T. New England IPA also took 10th place in the 2023 GABS Hottest 100.
The brewery released a statement saying: “[The] group of previous investors and passionate supporters of Black Hops … believe in the brand, love the beer and are here to support the team. The production site, equipment, assets, and intellectual property and of course those wonderful recipes of the Black Hops brand will continue.
“For customers, it is our intention that the beer you’ve come to love, maybe from your local bottle shop or bar, and the fantastic hospitality experience of the Black Hops taprooms will continue as always.
“There’s a lot more to be communicated, but for now, we’re saddened by the uncertainty and stress that the Black Hops team, investor groups and our loyal supporters have had to go through.
“At this early stage, we cannot answer what will be many questions that will arise, but it is our clear intention to continue communications with our loyal customers during this transition period into an exciting next chapter in the Black Hops story.
“As challenging as it is right now, we are genuinely optimistic about the future of Black Hops. Independent breweries are an important part of the beer landscape, and we genuinely feel Black Hops is a jewel in the crown of the craft beer industry.
“Thanks for your support and understanding, you’ll hear from us again very soon.”
Tough times for craft brewing
Other craft brewers have not been able to find similar lifelines. After more than 10 years in operation, Temple Brewing Company has announced it is closing permanently following tough post-COVID-19 trading conditions.
The brewery is appointing a liquidator to manage the closure of its operations on or about 23 May 2024.
Since the beginning of 2024 alone, Western Australia brewery Golden West, South Australia’s Big Shed, Victoria’s Hawkers and NSW’s Wayward have all gone into administration. Newcastle’s Steel City Brewing has also ceased production due to cost of living pressures, while popular Melbourne craft brewer Deeds Brewing announced last week that it was permanently closing.