Melbourne-based contract brewing operation Sample Brewing is being offered for sale after the business called in administrators on Tuesday.
Administration of the brewing business, which launched in 2014, was taken over by Shane Cremin of insolvency firm Rodgers Reid on Tuesday.
Cremin told Brews News that the business continues to trade with plans to offer the business for sale as a going concern. Expressions of Interest are currently open and due to close next Friday.
Sample is understood to have debts of approximately $300,000 with founder and director Vedad Huric the largest creditor. The business currently has annual revenues of $2.6 million and is understood to be selling in excess of 500,000 litres per year.
“They have strong supplies to major customers and have good support from their suppliers and creditors,” Cremin said.
Sample began an Expression of Interest campaign with equity crowd-funding platform Birchal in November 2017, though the process was discontinued before the investment phase.
Birchal co-founder Matt Vitale said at that time, companies were still required to convert to a public structure before they could make an offer under the crowd-sourced funding regime.
“Despite really strong interest in the EOI campaign, I believe Sample ultimately took the view that a public company structure was not right for them,” Vitale said.
“[This is] a view shared by many companies in the early days of the CSF regime, even with the governance concessions that were available for companies that converted to use the CSF regime.
“I believe Sample were in discussions with some of the larger investors that came through the EOI process, but don’t know if any private investments were made.”
It is understood that Sample had been in recent negotiation to sell the business but when the sale did not proceed the administration was sought.
In the crowd-funding pitch, Sample said its “business model is structured for fast, accelerated growth through a four-tier strategy of superior production, sales, marketing and brand experience.”
Sample claimed ranging in more than 500 bars, pubs, restaurants and bottle shops with national distribution.