Breal Capital reportedly in talks to buy famous Yorkshire brewer Black Sheep

Breal Capital, an investment firm, is reportedly in talks to buy The Black Sheep Brewery, a week after the famous Yorkshire company announced that it intended to appoint administrators.
By Greg Wright
Published 11th May 2023, 13:17 GMT
Updated 11th May 2023, 13:19 GMT

Breal Capital, part of Breal Group, has emerged as the leading contender to acquire the brewer, according to Sky News.

Industry sources quoted by Sky said other bidders remained in contention to acquire the business, and that a deal with Breal was not yet certain.

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It was unclear whether any sale would be implemented through a pre-pack administration, although one industry executive suggested that that was a possible outcome, Sky reported.

A spokesman for Black Sheep said: “We are talking to a number of interested parties and expect to be able to make a positive announcement soon. We do not intend to speculate on the result of our ongoing talks at this stage.”A spokesman for Black Sheep said: “We are talking to a number of interested parties and expect to be able to make a positive announcement soon. We do not intend to speculate on the result of our ongoing talks at this stage.”
A spokesman for Black Sheep said: “We are talking to a number of interested parties and expect to be able to make a positive announcement soon. We do not intend to speculate on the result of our ongoing talks at this stage.”

A spokesman for Black Sheep told The Yorkshire Post: “We are talking to a number of interested parties and expect to be able to make a positive announcement soon. We do not intend to speculate on the result of our ongoing talks at this stage.”

Last week, the board of the company revealed it had resolved to file a notice of intention to appoint administrators to protect the interests of its creditors.

Speaking last week, 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.

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"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. 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.”

“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.”

Last week a spokesman stressed that the Masham-based business was trading as normal and there have been no job losses to date.

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