Skip to main content

North Brewing Company administration: Breweries continue to feel the squeeze

North Brewing Company, a Leeds-based brewery and bar-owner, has secured a sale out of administration that will ensure their future trading, having become the latest to issue a notice of intention to appoint administrators earlier this month. 

They are certainly not alone in facing uncertainty in the current market. As we have noted previously, many in the retail, leisure and hospitality sector have had to contend with a string of simultaneous headwinds which continue to have a serious impact on trading. In addition to North Brewing, other breweries such as Black Sheep, True North Bew Co., and Leeds Brewery have all been forced to appoint administrators over recent months. 

Businesses are faced with increased costs for ingredients and materials, energy and staff, a situation exacerbated by inflation, the ongoing war in Ukraine and the recent deterioration of the situation in and around the Red Sea. Higher rates of interest force up the cost of borrowing, and at the same time consumers are faced with squeezed budgets and a consequent drop in disposable income.

At Irwin Mitchell, we understand these challenges and have significant experience of supporting brewers in finding a solution. In October last year, we commented on another brewery administration – Love Lane Brewery – and provided our thoughts and recommendations on how to avoid a similar situation. Acting quickly and at the first sign of trouble is crucial – an honest, open and proactive approach to any problems, with the support of expert advisors, can help to ensure the best possible outcome. 

“Unfortunately, brewers – like many other businesses - continue to face significant challenges, and this news is merely the latest example,” says Andrew Walker, our Head of Restructuring & Insolvency. “Taking advice early can be the difference between continued trading and insolvency. Legal and insolvency experts can help to identify cost savings and forecast cash flow, build resilience, and ensure that no matter what, you remain compliant with your legal obligations.”  

If you are a business owner and would like to speak to a member of our team, you can find more information on our website.