Three pubs belonging to the recently rescued Black Sheep Brewery have closed following efforts to return trade to pre-Covid levels.
Leeds venues The Tap & Kitchen and Mr Foleys, and The Last Drop Inn in York have all immediately shuttered despite what the firm says has been extremely hard work over recent years to save them. Some staff, including a "small number" at its Masham headquarters have been made redundant.
A company spokesman said: "Having recently conducted an extensive review of our business, we have explored every angle to try to keep these locations trading profitably, but without success. Unfortunately, the only avenue left for us was the closure of these premises. It is always the last resort for us to make redundancies, and we are saddened to see such dedicated colleagues leaving us, at this time."
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The move follows Black Sheep's rescue out of administration by a newly established company controlled by London investment firm Breal Capital. The £5m pre-pack deal in May came after Black Sheep revealed its search for a buyer, amid funding concerns, had failed.
Its collapse had been caused by pandemic-induced losses and a subsequent default on a "time to pay" agreement with HMRC. The new business, Black Sheep Brewing Company Ltd, involves former CEO Charlene Lyons and directors Robert Theakston and Jonathan Theakston as minority shareholders.
A report from administrators at Teneo shows Black Sheep Brewery Plc had significant debts including £6.3m owed to Close, which has so far received £2.6m but is not expected to be repaid in full. Smaller sums were owed to Lloyds and Dewscope who will also lose out, as will unsecured creditors to the tune of £1.07m.
Despite the new pub closures, Black Sheep Brewing Company said it was committed to growing its retail estate and was looking for profitable venues that complemented its brand and ethos. The firm's other pubs remain unaffected.
