Black Sheep Brewery: Creditors and tax payers set to lose out on £4m from administration
Creditors and tax payers are set to lose out on around £4m from the administration process of Yorkshire-based Black Sheep Brewery. Michael Crossland reports.
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00:00 Hello I'm Michael Crosland, Business Reporter with the Yorkshire Post and we have a brief update
00:04 today on the sale and administration process of Masham based Black Sheep Brewery. The company was
00:12 sold last summer to London investment firm Breel Capital for £5 million in a prepack administration
00:19 deal. It's now been revealed however that taxpayers and creditors are set to lose out on around £4
00:26 million from Black Sheep's administration and its move into new ownership. At the time of the
00:32 company's sale its creditors who were parties who had money as part of the administration were owed
00:38 around £6 million. Dozens of unsecured creditors collectively owed more than £1.5 million have now
00:46 been told that they are unlikely to receive any of their money back. The £4 million shortfall
00:52 seen by the firm also includes a large proportion of two government-backed Covid loans that had been
00:59 taken out by the brewery in 2020 and then again in 2022 totalling over £4.5 million. A new progress
01:08 report which was published by the company's administrator shows that £1.84 million is still
01:14 outstanding in these loans. Due to both loans being government-backed the majority of this sum
01:20 will also be covered by the state now. As well as this, £135,000 owed to HMRC in connection with
01:28 the pub arm of the business will not be repaid with a further £1.2 million owed to HMRC from
01:34 the brewery side also still under question. That's all we have at the minute, I'm Michael
01:39 Crossland reporting for the Yorkshire Post.