After months of fighting to recalibrate its business, Mighty Craft went into administration at 10.15am this morning.

Liam Healey and Quentin Olde of specialist restructuring firm Ankura were appointed as joint administrators.

The company had been undergoing a divestment and restructuring program to reduce its debt. Fundamental to this program was a proposed merger with Better Beer, an arrangement that required the support of Mighty Craft’s senior lenders and the shareholders of Better Beer. A capital raise to support this process was also contemplated.

However, Ankura said it now appeared unlikely that an agreement would be reached between Mighty Craft, its senior lenders and Better Beer and that was acceptable to all parties.

Ankura said: “The Directors therefore formed the opinion that the company should be placed into voluntary administration to evaluate options for the company to continue as a going concern, or if this is not possible, that an administration will result in a better return for the creditors and members of the company than would otherwise result from an immediate winding up of the company.”

The administrators have assumed control of the company’s business and assets and have advised they will be undertaking an urgent assessment, working closely with management and the Board to determine the appropriate way forward to maximise the outcome for all stakeholders of the company. In the meantime, the administrators have confirmed that the operations of the company and its subsidiaries will continue on a business-as-usual basis.

A first statutory meeting of creditors will be held within eight business days of the appointment of the administrators.

As shareholders are generally unable to transfer their shares during the administration of the company, the administrators will be requesting that all trading in the company’s shares on the ASX remain suspended during the administration period.

Tumultuous year for Mighty Craft

Mighty Craft shed its remaining interest in beer – aside from Better Beer, the brand it co-founded with The Inspired Unemployed and entrepreneur Nick Cogger – last month.

The company announced on 3 June that the sale of Mismatch was due to settle on or around 12 June 2024.

Mighty Craft previously owned or held stakes in Mismatch Brewing, Jetty Road, Slipstream, Sauce Brewing, Ballistic Beer Co, Sparkke Beverages and FogHorn Brewery.

Mighty Craft also announced that the sale of 78 Degrees had settled last month.

In April 2024, a consortium led by former CUB CEO Peter Filipovic acquired Mismatch Brewing and 78 Degrees distillery. It followed the consortium, called United Publicans group, buying Jetty Road from Mighty Craft late last year for $3 million, in addition to Hills Cider.

Despite the fire sale, Mighty Craft had remained hopeful of a merger deal with the booming Better Beer brand.