Skinner's Brewery sale agreed to new buyer

Skinner’s Brewing Co. Limited, a much-loved Truro-based Brewery, formerly fell into Administration on 6 October 2022, with Luke Venner and Malcolm Rhodes of Bishop Fleming, appointed Joint Administrators at that time. We are pleased to confirm the sale of the Company’s business and assets.
 
 

The history

Skinner’s Brewery was founded in 1997 and the business was incorporated as Skinner’s Brewing Co. Limited on 27 July 2002. The Company’s trade comprised of brewing cask, bottle and craft keg beers and supplying both locally and nationally to the on and off trade.

The main brewery site was purchased in 2003, with a mortgage from National Westminster Bank plc, which housed the brewing, cask cleaning and racking facilities.

There was an onsite shop and visitor centre, with a tasting room for daily brewery tours and evening functions. There was also an outside Tapyard bar open to the public, and seating for 200 people.

Until 2022, the Company also operated the Old Ale House public house in Truro.

The Company’s business was significantly impacted by national restrictions imposed as a result of the COVID-19 pandemic in March 2020. COVID related financial support was initially not available due to the shareholders’ dispute, but after that had been resolved, the Company sought assistance by way of a factoring agreement (January 2021) and CBILS funding (May 2021), with both facilities secured by Debentures granted over the Company’s assets.

By early 2022, the Company had an unpaid debt of c£1.7m with HM Revenue and Customs. The Company’s sole director therefore sought advice from the Company’s accountants and was recommended to speak with restructuring professionals from Bishop Fleming LLP.

Bishop Fleming steps in

In March 2022, Bishop Fleming LLP were instructed to advise on the Company’s financial situation and to conduct a full review of, and provide advice on, the options available.

This led to an instruction to assist with the preparation of a proposal for a Company Voluntary Arrangement (“CVA”) and to liaise with the Company’s accountants over the provision of appropriate cashflows and forecasts, and with HM Revenue and Customs as the principal unsecured creditor.

On 7 September 2022, HM Revenue and Customs gave notice that they were proposing to take immediate steps to file a winding up petition against the Company at the High court.

Following a final review of the CVA process and the consideration of all other options, the Director resolved to place the Company into Administration with a view to protecting the interests of creditors and stakeholders generally.

Consequently, on 23 September 2022, Bishop Fleming LLP were instructed to assist with this process, with a Notice of Intention to Appoint Administrators being filed that day in the High Court of Justice, Bristol. The Company subsequently ceased trading on 30 September 2022.

Looking to the future

Luke Venner and Malcolm Rhodes of Bishop Fleming LLP, the Joint Administrators of Skinner’s Brewing Co. Limited, are pleased to announce the completion of sale of the Company’s business and assets to an unconnected party on the 1 March 2023.

Luke Venner, Restructuring Director, said: “Following a concerted nationwide marketing process and extensive negotiations since, we are delighted to be able to confirm the sale of the Company’s business and assets to an unconnected, local business for an undisclosed sum. The sale ensures that the Company’s two secured creditors, including Cornish-based SWIG Finance, are redeemed in full, with additional funds being generated for other creditors”.

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Our business Restructuring Team is highly qualified and experienced to provide you with pragmatic, commercial advice on improving or protecting your business, whether you are looking for company restructuring or business recovery services to build resilience or to meet adverse challenges.