Masham Black Sheep Brewery looks at sale or merger as part of review

The brewery was founded by Paul Theakston in 1992

The merger or sale of a North Yorkshire brewery are just two of several options being considered as part of a financial review, the business has said.

Masham's Black Sheep Brewery said its board was considering "all options" to ensure a stable future for the firm.

As with many businesses after Covid and with cost of living pressures, "forward funding" was an issue, it said.

But chief executive Charlene Lyons said despite this, the firm had "exciting and ambitious" plans for the future.

Ms Lyons said although the company was experiencing good sales, it had appointed financial advisors Teneo to explore funding options as part of a strategic review.

"We believe now is the right time to conduct this strategic review to secure the best outcome for our valued shareholders and other stakeholders."

Charlene Lyons said it was the right time to explore funding options

Ms Lyons added: "Forward funding is an issue for many businesses in the tight market brought about by the after-effects of Covid-19 on the hospitality sector.

"This is exacerbated by the cost-of-living issues affecting consumer spending."

However, the brewery added that it was not currently in talks with any potential buyer, nor had it been approached by anyone.

Ms Lyons said: "The brewery has exciting and ambitious plans for the future and interesting projects in the pipeline."

In January, Ms Lyons told the BBC the brewery had tried to avoid passing on its rising costs to consumers.

Black Sheep Brewery was founded in 1992 by Paul Theakston.

He had left his family brewery T&R Theakstons after it was sold to a national firm - hence the company's name Black Sheep.

In 2003 Paul's cousin Simon Theakston and his brothers led a buy-back, bringing the almost 200-year-old brewery back into family control. The business remains based in Masham and operates the brewery and visitor centre there.

Paul Theakston stood down from the Black Sheep board in 2018, though he continues in an ambassadorial role with the company and his two sons both work for the firm.