Black Sheep brewery up for sale in move to secure fresh funding
Black Sheep brewery is up for sale to raise new funding as it struggles with a Covid hangover
Black Sheep is considering a sale of the company after hiring financial advisors to help it navigate through choppy economic waters.
The North Yorkshire independent brewer has launched a strategic review after signaling the ‘after effects of Covid-19’ on pubs and the impact of the cost of living crisis on consumer spending.
Breweries have struggled since the pandemic hit and pubs were forced to close.
In the family: Brewer Black Sheep – founded in 1992 by Paul Theakston (pictured with sons Jo and Rob) – has struggled since the pandemic
The sale of Black Sheep would be a major setback for the industry.
The company was founded in 1992 by Paul Theakston to ‘promote independent brewing in Yorkshire’ after his family business T&R Theakston was bought out by a larger brewer.
Theakston describes himself as the black sheep after leaving the family business and building his own site in Masham, the same town where five generations of Theakstons brewed beer before sale.
The beers, including flagship Black Sheep Ale and Cry Wolf IPA, are sold in pubs and supermarkets across the UK.
Black Sheep told investors yesterday that its ambitious growth plans were held back by a “significant constraint” on funding amid “predominant economic conditions.”
Experts from management consultancy Teneo will help the board look at options, including a merger or acquisition ‘in whole or in part’.
But a sale is not guaranteed, with Black Sheep insisting it would only opt for a sale if it created a “stable base” for the future.
In its 2022 annual report, Black Sheep lamented the industry’s slow post-Covid recovery, saying breweries would remain economically hit for “some time”.