UK brewery giant collapses into administration – but 145 jobs saved in rescue deal

A brewery company which collapsed into administration has been snapped up in a £4.5million rescue deal that has saved 145 jobs. Administrators were appointed to Keystone Brewing Group Ltd., but a deal was struck with family run investment firm, Paramount Retail Group.

Keystone Brewing Group's stable of brands included Black Sheep, Purity Brewing Co., Magic Rock Brewing and North Brewing Company. Paramount is combining Keystone with Saltaire Brewery to form a new entity, Great British Drinks Company, in a bid by UK-based entrepreneurs to secure the future of regional craft brands.

The newly formed Great British Drinks Company said it will be ploughing £2m into revitalising Black Sheep and Purity on top of the deal to return the business to growth.

Sunny Sharma, Co-Founder of Great British Drinks Company, said: "This isn’t just a restoration deal. It’s about restoring pride to Yorkshire. The region has a proud brewing heritage and we could not stand by and let that be lost."

Mr Sharma vowed to make sure each brewery and its brands maintained their distinctiveness and independence.

He said this would only come from the people and places involved and not through consolidation, adding: "Our ethos is one of stewardship."

The new company described Black Sheep's retail presence as "strong", serving major supermarkets as well as pubs and restaurants.

Mr Sharma said Great British Drinks Company's is in a strong financial position, with combined sales of £28m, and three "important" heritage brewery sites would be saved in the deal.

Founded in 1992 after Paul Theakston left the family run Theakston's Brewery, Black Sheep Brewery is based in Masham, North Yorkshire.

Its brands include award-winning Riggwelter, Best Bitter Beer, 54 lager, Bobby Horn's Easy Apple Cider and Respire, a carbon neutral IPA. Black Sheep also holds licenses for brands including Hofmeister and Sassy cider.

Keystone Brewing Group's business and assets had been sold in a pre-packaged deal to West Yorkshire based Saltaire Brewery.

Joint administrators Anthony Collier and Martyn Rickels of FRP Advisory Manchester completed the sale with advice from Shoosmiths on January 22.

FRP said the business had been facing increased financial pressure as a result of challenging trading conditions across the brewing and hospitality sector.

It said the pre-pack sale means the business will continue to trade without interruption under new ownership.

Mr Collier said: "Keystone Brewing is a well-established and highly regarded business with strong brands and a loyal customer base.

"This transaction provides the business with a secure future under new ownership and delivers a positive outcome for employees and customers alike."