Melbourne craft brewer Kaiju has entered voluntary administration but its operations will continue as usual during a restructuring process.
Kaiju said that its directors decided on the move after considering options to deal with the company’s debt accumulation.
“While the business is now trading profitably, this step allows us to restructure and ensure a stronger future for Kaiju Beer,” said Kaiju CEO and co-founder Callum Reeves.
The debts mounted after the company secured loans to finance the expansion of its production capacity on the back of consistent growth between 2017 and 2021.
However, it began to struggle financially amid rising excise tariffs, the introduction of container deposit schemes, and declining consumer confidence.
Despite initiatives such as staff redundancies, reducing director pay, launching more entry-level products, and restructuring its sales approach, Kaiju continued to struggle and noted that the deferred excise payments had proven unsustainable.
DBA Reconstruction is acting as advisory and voluntary administrators for Kaiju.
