Significant Deal In The Hospitality Sector
Irwin Mitchell’s Restructuring and Insolvency team has advised on a deal which has secured the future and approximately 325 jobs at Sheffield-based True North Brew Co.
Howard Smith and Rick Harrison from Interpath Advisory were appointed joint administrators to True North Brew Co Limited on 2 August 2023. Immediately following their appointment, the joint administrators concluded a sale of the business and assets to Cocktails and Craft Beers Limited. All of the Company’s 325 employees have transferred to the purchaser as part of the transaction.
The Company operates 12 licenced venues across South Yorkshire, as well as its own brewery and distillery.
True North Brew Co had been negatively impacted by lockdown measures during the COVID-19 pandemic and the ensuing series of economic and trading headwinds, including spiralling food, labour and energy costs.
Irwin Mitchell’s team is led by partner Tom Paton. He was supported by colleagues Tom Walklett and Curtis Blackham.
Expert Opinion"We are acutely aware of the difficulties that the hospitality sector has faced, particularly during the COVID-19 pandemic and the subsequent economic challenges. It is with great satisfaction and delight that we have been able to advise on this deal, which secures the future of True North Brew Co and safeguards approximately 325 jobs." Tom Paton, Restructuring & Insolvency partner
Howard Smith, managing director at Interpath Advisory and joint administrator, said: “True North Brew Co’s pubs and bars have long been a popular destination for customers across South Yorkshire, but the impact of lockdowns and hyperinflation have placed an enormous amount of pressure on the business.
“After exploring a number of options, we’re pleased to have concluded this transaction which will see the continued operation of the Company’s venues, brewery and distillery, and which importantly, safeguards over 300 jobs. We wish the management team all the best for the future.”