An iconic drinks brand has been saved from being liquidated after spending months in voluntary administration.
The beverage brand run by husband-and-wife team Nathan and Felicity Cowan out of Beechworth in north-east Victoria, Billson’s Brewery, was placed into administration in July.
Creditors McGrath Nicol last week outlines three options for the company: an end to the administration, a deed of company arrangement or liquidation.
Administrators recommended the second option as it offered the best return for creditors by allowing them to govern how to deal with the company’s affairs.
Mr and Mrs Cowan said they were ‘thrilled’ by the outcome which secured the future of the company and the 159-year-old brewery it’s based out of.
‘This morning, our proposal to restructure and recapitalise the business was approved by our creditors,’ a statement from the couple to social media reads.
‘This marks a pivotal milestone for us of which we are truly grateful.
‘The restructure will allow us to refocus on what we love most: the Beechworth venue experience, our range of traditional flavours and the site’s pristine alpine spring water.’
Iconic Aussie drinks brand Billson’s Brewery (pictured) has narrowly avoided being liquidated after administrators were able to find a solution with unpaid creditors
The couple thanked the support of customers for playing a ‘vital role in keeping the Billson’s dream alive’.
‘We look forward to sharing more details about our restructure and plans in the coming weeks, but for now, we simply want to say thank you,’ they wrote.
Billson’s produces premix drinks and craft beer and blamed their collapse on a sharp decline in customer spending amidst rising inflation and high government excise on spirits.
The collapse of the business comes despite annual sales soaring to about $120 million in 2023-24, up from $100 million a year earlier.
In January, Billson’s employed approximately 200 staff members.
However, by February the company had slashed this number in half to 100 in an effort to cut costs, with the administrators planning to implement further job cuts.
Among the company’s assets is the historic Beechworth brewery which has become a popular tourist attraction offering tours, accommodation, a beer garden and a speakeasy bar.
President of local business advocacy group Beechworth Inc, Katerina Witherow, said the company is a ‘big player’ in the town’s economy and was happy to see it continue trading.
Owners and husband-and-wife team Nathan and Felicity Cowan (pictured) said they were ‘thrilled’ administrators had secured both the company and historic brewery’s future
‘It’s been a difficult time for business to trade post-COVID,’ she told the ABC.
‘Especially in these times, it’s so hard and difficult out there at the moment and we do have a lot of empty shops in town.’
Ms Witherow added that she hoped the owners had ‘learnt a lot of lessons’ about running the brewery to keep it above water.
Billson’s being saved in the 11th hour is one of few wins for the alcohol industry which has seen a number of independent brewers collapse over the past year.
Most recently the Queenscliff Brewhouse in Queenscliff, southeast of Geelong, had administrators appointed on September 23.
The venue offers wide variety of craft beer, gin and whiskey plus a ‘micro brewery’, distillery, cellar and family bistro which features a 4.2 star rating on Google.
Founder of craft brewery Young Henrys, Richard Adamson, accused Prime Minister Anthony Albanese of abandoning the industry which contributes $1.93billion to the national economy each year and employs about 10,000 people.
‘When he was in opposition, he was supportive and helped get the remissions scheme (for excisable alcohol) through (in 2021),’ Mr Adamson, who is also president of the Inner West Breweries Association, earlier told Daily Mail Australia.
‘But I guess he’s got bigger fish to fry at the moment (than help us).’
