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Gold Coast-based craft brewery Black Hops has entered voluntary administration for the second time in just over two years after a planned sale of the business fell through at the last minute.
Worrells has been appointed administrator of Black Hops Craft Pty Ltd and Green Hops Brewing Pty Ltd, marking the end of a short-lived resurrection for the brewery that was purchased out of its first administration for $3.2 million in July 2024.
The two entities were formed by a shareholder consortium that acquired the original Black Hops Brewing business after Deloitte oversaw its initial collapse in March 2024, which left $7.3 million in debts.
Balck Hops director Luke McCormack pins the blame on several factors, including the failure to sell the business to a new owner.
"Unfortunately, the headwinds affecting the Australian independent brewing sector have never been stronger," says McCormack.
"Over the past few months, the business was well advanced in sales discussions, but regrettably these broke down at the 11th hour.
"We now believe voluntary administration provides the best opportunity to preserve the business and maximise the prospects of a successful future and we will be assisting Worrells throughout this process.
"We also want to extend a heartfelt thank you to the Black Hops team and everyone who has supported the brewery during what has been a difficult period for Australian independent beer.”
"Headwinds affecting the Australian independent brewing sector have never been stronger," McCormack said.
The fate of the business is again in the hands of creditors, the first meeting of which has yet to be announced.
Worrells administrator Chris Cook says the firm's immediate focus is on stabilising operations and running a sale campaign for the business.
“The administration has only just commenced, and our immediate focus is to stabilise operations, understand the companies’ financial position and preserve value for creditors and stakeholders," says Cook.
"At this stage, the business is continuing to trade as normal.
"We are working closely with the directors, senior management and key stakeholders while commencing a sale campaign for the business.
"Black Hops is a recognised brand with a loyal customer base and a passionate team. Our objective is to run an orderly process that gives interested parties the opportunity to acquire the business, while seeking to maximise the outcome for stakeholders.”
The brewery, founded on the Gold Coast in the mid-2010s, was once valued at $65 million after completing a record $2.2 million crowdfunding raise in just 24 hours in 2022.
Sales peaked at $16.26 million in FY22 before declining 10 per cent in FY23 and a further 20 per cent in FY24, precipitating the original collapse.
When the shareholder consortium completed its buyout in July 2024, Black Hops Craft spokesman Darren Hill called the brewery "a jewel in the crown of the craft beer industry".
That optimism proved short-lived. The identity of the would-be buyer whose deal collapsed has not been disclosed, and no financial details of the new entities' trading performance between the July 2024 acquisition and the latest administration have been made public.
The fallout from Black Hops' first administration left a trail of losses across its creditor base.
Judo Bank, the secured lender owed $3.25 million, received just $1.5 million from the $3.2 million sale and submitted a further $1.8 million unsecured claim.
Unsecured creditors totalling $5.6 million, including $3.1 million owed to the ATO, faced an estimated return of about 4 cents in the dollar.
Black Hops is the latest independent brewer to struggle in recent years with the sector facing a prolonged shakeout driven by rising input costs, softening consumer demand, and intensifying competition from major brewers expanding their craft portfolios.
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