Auckland craft brewer and wholesaler Brothers Beer has been put into voluntary administration after its financial position was impacted by Covid lockdowns.
Stephen White and John Fisk of PwC New Zealand were appointed as voluntary administrators of the group’s Brothers Beer Holdings Limited, Brothers Beer Limited, and Brothers Wholesale Limited.
Brothers Beer primarily supplies domestic supermarkets and liquor stores and currently operates seven pubs and hospitality outlets across Auckland.
“In the three or so years preceding Covid-19, Brothers Beer embarked upon a significant expansion programme where the number of hospitality outlets increased from one to six, with a seventh opening since then,” White said.
However, the group’s operations and financial position were badly impacted by pandemic-related restrictions.
White added he and Fisk would work with key stakeholders to come up with a restructuring solution. The group’s wholesale business will continue, but some of the hospitality outlets may have to close.
“Having been operating for more than 10 years, the Brothers Beer brand is well-established and well-regarded in the sector, so we’re hopeful this can be achieved,” White stated.
The administrators are expected to present their restructuring proposal during the watershed meeting next month.
