Brothers Beer, a craft brewery, wholesale, and hospitality business based in Auckland, has initiated voluntary administration, a move attributed to the significant financial challenges posed by Covid-19 lockdowns. The predicament faced by Brothers Beer underscores the hardships experienced by brewing and hospitality establishments since the onset of the pandemic.
Established in 2012 by co-founders Anthony Browne and Andy Larsen, Brothers Beer evolved into a craft beer success story, experiencing rapid growth. The company expanded to encompass seven venues and a 52,000-litre brewery site in Mount Eden named Juke Joint.
Addressing the situation, Stephen White, voluntary administrator from PwC, revealed that the primary objective is to evaluate the feasibility of a restructuring effort aimed at stabilizing the company’s financial stance and positioning it for a viable future. White stated, “The Brothers Beer brand is well-established and well-regarded in the sector, so we’re hopeful this can be achieved. However, it is likely that a number of the hospitality outlets will unfortunately have to close.”
With a workforce of 70 employees, Brothers Beer operates venues in City Works Depot, Onehunga Mall, Orakei Bay Village, and other locations. Additionally, the company supplies to bottle shops and supermarkets.
White affirmed that Brothers Beer’s wholesale distribution will continue throughout the administration process, and plans are in place to maintain operations at the Mount Eden and Piha venues. A restructure proposal is expected to be presented to creditors for their consideration in an upcoming watershed meeting within the next month. The administration’s objective is to secure a more favorable outcome for stakeholders than a simple liquidation process would yield.
