In a positive sign for Australia’s cultural capital Melbourne, a popular craft brewery will remain in business after several brutal years of Covid lockdowns.
Bad Shepherd Brewing Cofounded in Cheltenham by Dereck and Diti Hales in 2015, it successfully emerged from voluntary administration last week after creditors approved a financial restructuring of the company.
The brewery and adjacent pub, serving Australian-American barbecue dishes, had appointed DBA Advisory as administrator last month after battling through the world’s longest lockdown – a total of 262 days – under former Prime Minister Dan Andrews.
The Hales worked with administrator Atle Crowe-Maxwell to develop a proposed Deed of Company Arrangement to financially restructure the company and ‘ensure a stronger and more resilient operation in the future’.
Mr Hales said the company has made progress as usual under management, with the aim always being to return to profit.
“Beer production, sales, distribution and brewpub operations have not missed a beat since we entered administration.”
‘After a difficult period for the company, we are grateful that creditors have supported our restructuring proposal and backed us to return Bad Shepherd to a strong position.’
“We are excited about the opportunities that await us.”
Melbourne craft beer makers Bad Shepherd Brewing emerged from voluntary administration (photo: management including founders Dereck and Diti Hales center right)
It’s good news from beer lovers in Melbourne who have had a tough time during the world’s longest lockdown, as the city’s bars and clubs come back to life
He said Bad Shepherd Brewing Co. remains committed to producing quality beer and providing memorable experiences for their customers and the local community.
It is understood that no staff positions have been cut during the administration.
Ms Hales previously told The Crafty Pint their business was similar to many small operators in Melbourne.
‘We have taken on debt positions to weather the Covid pandemic and our problem is that old debts are combined with the weakening and downturn of the market and pressure on the cost of living.
‘We have never been able to get ahead of that inheritance debt; if it were gone, we would actually be running a profitable business.
“The challenge is that if you look at everything in the sector and move forward over the next 18 months to two years, things don’t look good for a while.”
The brewery makes a range of delicious beers including double choc, peanut butter and jelly, and fan favorite the Poseidon triple IPA
The Hales said it was business as usual during the government and it was good to be back
Ms Hales said it is extremely difficult in the ‘current climate’ to get ahead of the debts built up during the period of lockdowns, but the restructuring will allow them to stay afloat as business returns.
Any creditors of the company whose debts have not yet been recognized must submit their claims before November 30.
Ny Breaking Australia has contacted Bad Shepherd Brewery and DBA Advisory for comment.