Harrogate’s Black Sheep saves dozens of jobs at struggling York Brewery

Harrogate’s Black Sheep Brewery plc has bought York Brewery out of administration, saving dozens of jobs.

York Brewery went under last week (December 13) along with parent company Mitchell’s of Lancaster after facing unsustainable cashflow pressures.

But the £2.1m-turnover firm will remain in business as part of Black Sheep, with more than 40 jobs transferring over.

The deal, completed for an undisclosed sum, includes York Brewery, its brands and four pubs – Last Drop Inn, The Tap Room and The Three Legged Mare, all in York, and Mr Foley’s Tap House in Leeds.

Joint administrators Steven Muncaster and Sarah Bell, from advisory firm Duff & Phelps, facilitated the transaction.

Black Sheep Brewery chairman Andy Slee said: “This acquisition fits perfectly with our strategy of developing our presence in our Yorkshire heartland and owning pubs.

“Entering administration was worrying for the team at York Brewery, but our deal offers some comfort that its successful brand can be maintained, and the pubs can continue to operate.”

He added: “York Brewery complements our strong brands and by acting quickly we have been able to provide a good outcome for both organisations.”

Rob Theakston, managing director of Black Sheep Brewery, commented: “Over the last 26 years we have produced some of the UK’s most iconic, award-winning beers, and the purchase of another longstanding brewery will secure the future of another well-respected Yorkshire brand.

“It also starts our journey into retail which was announced at the AGM in September. We are delighted with the acquisition.”

Duff & Phelps’ Steven Muncaster said of the deal: “Despite being a popular destination for both locals and tourists, York Brewery unfortunately continued to face cashflow pressures, ultimately resulting in it being placed into administration.

“However, we’re delighted to have secured a sale for York Brewery, which is especially pleasing so close to Christmas.”

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