NZ’s Brothers Beer goes into administration
Auckland-based craft brewery, wholesale and hospitality business Brothers Beer has entered “voluntary” administration.
Brothers Beer, which also operates seven venues, has cited Covid-19 lockdowns as significantly impacting its financial position in the move that is illustrative of the hardship brewing and hospitality groups have faced since the pandemic hit.
Brothers Beer, which was founded in Auckland in 2012 by two friends Anthony Browne and Andy Larsen, was once a craft beer success story with the business growing quickly before expanding to a 52,000 litre brewery site in Mount Eden named Juke Joint.
Speaking about the situation, PwC voluntary administrator Stephen White revealed to local reporters that the plan was to explore whether a restructure could stabilise the business’s financial position and reposition it to make sure it had a future.
White explained: “Having been operating for more than 10 years, the Brothers Beer brand is well-established and well-regarded in the sector, so we’re hopeful this can be achieved. However, it is likely that a number of the hospitality outlets will unfortunately have to close.”
Brothers Beer currently employs 70 staff and operates venues in City Works Depot, Onehunga Mall and Orakei Bay Village as well as many others and also supplies to bottle shops and supermarkets.
White added: “We hope to be in a position to present a credible restructure proposal for creditors to vote on at a watershed meeting within the next month. The objective will be to deliver a better outcome for them than if the group is simply liquidated.”
According to White, Brothers Beer’s wholesale distribution will continue through the administration process, and there is a plan to keep its Mount Eden and Piha venues open.