North Brewing Co: Yorkshire brewery and bars to remain open after Kirkstall Brewery director saves firm from administration

North Brewing Co filed a notice of intention to appoint administrators on Monday of last week. The group, which supplies several supermarket and casual dining chains nationally, said that the cost of living crisis and Brexit were factors that had left it in need of funding.

The firm also trades through its own taprooms and bars and sells to pubs and bars across the country. It has now been sold in a pre-pack administration to Steve Holt, director of Kirkstall Brewery.

North Brewing Co said in a statement: “We are pleased to have found a solution for our team and the legacy of the North brand. Steve has been a friend of North for almost 30 years and has also been a pioneer in the UK craft beer scene. We share a passion for beer and the hospitality industry.

“We've been humbled by everyone's support, especially over the last week and it's been incredible to hear everyone's kind words.”

North Brewing Co will continue to be an independent brewery operating from its Springwell site and will be run by the existing management team. A total of 78 members of staff have transferred to the purchaser as part of the deal.

The transaction safeguards the future of the brewery in Leeds, as well as the North Taproom bars in Leeds and Manchester. It does not, however, include the North Taproom in Birmingham which will close, resulting in 15 redundancies.

The new company will be known as Vertical Drinks Ltd T/A North.

North Brewing Co’s new owner, Mr Holt, said: "Together, we’ll make sure that North will continue to make some of the best beer in the country."

In line with many companies within the hospitality sector, Covid-19 had a materially adverse impact upon the North Brewing Co’s financial performance, as Government restrictions forced the business to close for extended periods of time between 2020 and 2022.

In more recent months, the Group had also faced rising costs including energy, labour, and raw materials, which had an impact on cashflow.

In response to this, the directors sought to explore a number of options, including a sale of the business. When it became clear a solvent solution could not be found, they took steps to file for the appointment of administrators. Immediately following their appointment, the joint administrators sold the businesses and its assets to Vertical Drinks Limited and Kirkstall Brewery Limited, as part of one transaction.

Tom Swiers, head of food and drink at Interpath Advisory, who advised North Brewing Co on the transaction, said: “North Brewing Co is a renowned craft brewer that has forged an excellent reputation over the years for the quality and innovation of its beers.

“We are pleased to have completed this transaction which represents an exciting tie up of brilliant beer brands based here in Leeds. The deal will allow the Group to move forward under new ownership and we wish the purchaser and the management team all the best for the future.”