Masham-based Black Sheep Brewery to appoint administrators

The brewery was founded by Paul Theakston in 1992

A North Yorkshire brewery has said it intends to appoint administrators after failing to attract new investment.

Masham-based Black Sheep Brewery, which employs about 50 people, said in April it was undertaking a review to look at funding options, including a potential sale or merger.

The company said it had been "hit very hard" by the pandemic and rising costs.

The board said the decision to appoint Teneo Financial Advisory Ltd would protect the interests of its creditors.

Charlene Lyons, chief executive and executive chair of Black Sheep Brewery, said the company had done its "utmost to deliver new investment" but it had not been possible.

"We are progressing with our discussions around a sale of the business," she said.

Ms Lyons said the firm hoped to achieve continuity for the brewery and its staff.

"We have taken the decision to protect the business and its creditors, during this period, by filing a notice of intention to appoint administrators."

Chief executive Charlene Lyons has previously warned of the impact of the pandemic and rising costs

Ms Lyons said support for businesses during the pandemic had been welcome, but could not compensate for reduced cash flow in the long term.

"The business has been hit very hard by the pandemic and the sudden rise in all costs.

"It has been the perfect storm, but the team are confident that with a new structure Black Sheep will thrive and grow as the team set course in a new direction."

Black Sheep Brewery was founded in 1992 by Paul Theakston.

He had left his family brewery T&R Theakston, also based in Masham, after it was sold to a national firm - hence the company's name Black Sheep.

His cousin led a buyout of Theakston, bringing it back under family control in 2003.

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.