Alphabet Brewing Ltd (09094948): administration
- Status
- Administration ended
- Administration began
- 2023-04-14
- Administrators
- Paul Stanley, Jason Dean Greenhalgh
- Administrators' firm
- Begbies Traynor
- Incorporated
- 2014-06-20
- Location
- Manchester
- Industry
- 11050 Manufacture of beer
Why it went into administration
- COVID-19
- Weak consumer demand
- Rising costs / inflation
From the administrators' statement
The Company started trading in 2014 and after suffering under poor management by previous directors had incurred a large amount of historic debt. New directors were appointed who invested around £475,000 of their own funds and the Company was moving in a positive direction and paying down debts but this became increasingly difficult for the Company to maintain through external challenges, including the Covid pandemic, the decline of the hospitality industry and cost of living crisis and energy cost rises. Ingredients and materials also became in short supply and this resulted in cost increases for these also.
In addition, a significant agreement was made with a beer subscription service who subsequently defaulted on payments and entered into administration owing over £20,000 to the Company. This all resulted in restrictions of cash flow, forcing the brewery to operate at a fraction of its capacity. With the resulting low efficiency, reduced output and restricted amounts of sales it become impossible for the Company to achieve any kind of profitability and the Company had no option but to cease trading.
~3-
Administrators' statement of proposals (2023-06-07) · Companies House register