Mighty Craft goes into administration: Aussie brewer collapses after owners tried to keep it afloat
An Australian brewer and spirits producer has gone bust, becoming one of a growing number of businesses forced to close their doors amid the cost of living crisis.
Mighty Craft, which owns 33 percent of Better Beer, has declared bankruptcy after the company tried to emerge from financial difficulties.
On his websiteMighty Craft claims to be one of Australia’s leading and fastest growing premium craft beverage companies.
The company was only listed on the ASX five years ago and was once worth $1.8 million.
Mighty Craft desperately tried to stay afloat by merging, selling assets and brands, and reducing its board and management.
Bankruptcy firm Ankura has been appointed as administrator of Mighty Craft.
Investors were told the administrators were conducting an “urgent review” of the company’s situation together with management and the board.
The majority of Mighty Craft’s revenue comes from its 33 percent stake in Better Beer.
An Australian brewery and spirits producer has run into trouble, becoming one of a growing number of businesses forced to close their doors due to the cost of living crisis (stock image)
Better Beer is 46 percent owned by comedians Matt Ford (pictured left) and Jack Steele (pictured right) of The Inspired Unemployed
Comedians Jack Steele and Matt Ford of The Inspired Unemployed have a 46 percent stake in Better Beer.
Co-founder Nick Cogger owns 18 percent of Better Beer, which launched in October 2021.
Mr Cogger said Mighty Craft’s administrative procedures for Better Beer are simply ‘business as usual’.
“At some point in the future, someone or some company will file a DOCA (deed of company arrangement) and then we will likely have a new shareholder on our register,” Mr Cogger told Business News Australia in a statement.
“We look forward to officially separating from Mighty Craft in the coming months.”
Figures show that Better Beer has done well despite the downturn in the craft beer market.
For the six months ended December 31, revenue rose 32 percent to $26.1 million.
It appears that a proposed merger between Mighty Craft and Better Beer has fallen through.
“The company is undergoing a divestment and restructuring program to reduce the company’s debt,” the company said in a statement to the ASX.
Nick Cogger, co-owner of Better Beer, said Mighty Craft’s administrative procedures are simply ‘business as usual’ for Better Beer
‘Fundamental to this programme was a proposed merger between Better Beer Holdings Pty Ltd and MCL (Mighty Craft), an arrangement which required the support of MCL’s major lenders and Better Beer’s shareholders.’
The bankruptcy of Mighty Craft is the latest shock to the craft beer industry.
Late last month, popular Melbourne brewery Alchemy Brewing announced it was closing.
Lion, one of the world’s largest drinks companies, is to close its Malt Shovel Brewery in Camperdown, Sydney, at the end of August after more than three decades.