'Many more' breweries will soon follow Black Sheep into administration, CEO warns

The pre-pack administration saved around 140 jobs and secured the future of the business after the Masham-based company made a £1.6m loss in 2022/23 as it struggled with the fallout from the pandemic and rising costs.

In a newly-published report, administrator Teneo Financial Advisory has revealed creditors are collectively owed more than £6m – much of which is unlikely to be ever repaid.

The outstanding money includes a large proportion of two Government-backed Covid loans taken out by the brewery; one of which was only taken out last summer.

Ms Lyons said the problems that had led to Black Sheep’s administration are far from unique to the business.

She said: “Black Sheep is a significant employer within the town of Masham, this deal has prevented, what could have been a local employment catastrophe.

“The industry continues to face challenging times. In the last 12 months, 45 breweries entered insolvency in the UK, a three-fold increase on the previous year, as the cost-of-living crisis has squeezed household disposable income.

“This has had an extreme and adverse effect on all brewers’ sales, at a time when their own costs and inflation are high.

"Black Sheep has not been immune to these factors, leading it to the administration process. It is highly likely that many more will follow in the coming months.”