Popular beer brand to file for administration leaving drinkers gutted
CRAFT beer fans have shared their devastation after a popular brewery in Huddersfield announced its intent to appoint administrators.
Magic Rock Brewery, the maker of IPAs such as Cannonball and Magic Haze, has reportedly hired lawyers from Fladgate to help oversee the process.
It comes after Company House filings showed the brewer’s next accounts made up to December 31 2022 are more than a year overdue, a report in The Grocer said.
Usually, a notice of intention to appoint administrators helps troubled businesses explore rescue options or protect them from creditors’ demands.
This process can offer some breathing space for troubled firms but it also means the firm is still at risk of collapse.
Administration is when all control of a company is passed to an appointed licensed insolvency practitioner.
It doesn’t necessarily mean the end of the business.
Instead, administrators will try to help a company find ways to repay debts or solve its cash flow problems.
It follows an announcement last October by Magic Rock’s parent group In Good Company that it would put its sister brewery Fourpure into liquidation.
At the time the firm blamed market pressure in the drinks and hospitality industries for the closure, having already closed its taproom in London a few months prior.
In Good Company, which owns a number of craft beer brands, acquired Magic Rock in 2022.
It was previously owned by Lion, an Australian food and drink firm, and originally founded by Huddersfield businessman Richard Burhouse in 2012.
Magic Rock operates two taprooms around the Huddersfield area and a range of its craft beers have been stocked in supermarkets such as Asda, Tesco and Ocado and a range of independent stores.
The Sun has contacted In Good Company and Fladgate for comment.
News of the notice has devasted craft beer fans with many taking to social media to share their frustration.
One local said: “So sad, this is why we need to look after each other.”
While another added: “We’re gutted. Such a great place for us to go as a family with such a nice vibe to be able to meet with friends.”
TROUBLE FOR BREWERIES
It comes amid a tough period for the wider craft beer sector as it grapples with rising costs and weak consumer spending.
In November, fellow craft brewer ORA Brewing said it would close its taproom in Tottenham, London.
The Carlsberg Marston’s Brewing Company (CMBC) also closed its Wolverhampton’s Banks’s Brewery late last year.
Elsewhere, Cellar Head Brewing Company and Tap Room also fell into administration after attempts to find a buyer for the business failed.
Even pub giant Greene King, which owns 1,600 boozers across the country, was forced to shut down its 200-year-old Bury St. Edmunds brewery.
The number of craft breweries in the UK fell from 1,828 at the start of 2023 to 1,815 at the start of 2024.
The most recent figures show this now stands at 1,748 according to the latest report up to June from the Society of Independent Brewers and Associates (SIBA).
What is happening to the hospitality industry?
By Laura McGuire, consumer reporter
MANY Food and drink chains have been struggling in recently as the cost of living has led to fewer people spending on eating out.
Businesses had been struggling to bounce back after the pandemic, only to be hit with soaring energy bills and inflation.
Multiple chains have been affected, resulting in big-name brands like Wetherspoons and Frankie & Benny’s closing branches.
Some chains have not survived, Byron Burger fell into administration last year, with owners saying it would result in the loss of over 200 jobs.
Pizza giant, Papa Johns is shutting down 43 of its stores soon.
Tasty, the owner of Wildwood, said it will shut sites as part of major restructuring plans.