The Sunshine Coast’s Stalwart Brewing Co. has gone into liquidation with debts of $180,000.
Jarvis Archer of Revive Financial was appointed liquidator of Stalwart Brewing Company Pty Ltd, on 29th June 2022. Stalwart’s customer-facing venue was closed in January 2022, but brewing on-site continued until June.
The Company traded both a brewery and brewhouse in Nambour, in the Sunshine Coast hinterland, having launched its own venue in July 2020. Prior to this, founder Adam Tomlinson had operated Stalwart as a contract brand.
According to the liquidators, the brewery “experienced some early success with only limited pandemic impacts at the time”.
“However, when the Queensland borders reopened in late 2021, the Omicron wave, accompanied by more severe restrictions and vaccine mandates, caused staffing issues and a drop in trade for many hospitality businesses,” they said.
The brewing equipment was owned by an associated party and the trading premises have been returned to the landlord.
Stalwart is being closed down with debts of approximately $180,000 including amounts owing to the Australian Tax Office, trade creditors, and the company’s landlord.
“[This] is a trend we are now regularly seeing, especially in the hospitality and other consumer-focused industries,” explained liquidator Jarvis Archer.
“The difficulties of the past two years have caused debts to accrue on balance sheets, and increasingly difficult trading conditions are causing declining sales and unprofitable trading.
“As the ATO, lenders and landlords increase pressure to collect debts and get payments back on track, we’re experiencing a higher volume of insolvencies.”
At the beginning of the COVID-19 pandemic, the Independent Brewers Association suggested Australia could lose a large number of breweries – as much as 50 per cent – without the support of the government.
While many government measures such as Jobseeker Payments, rent moratoriums and business support funding did help, these measures have now been rescinded and brewers, like many other businesses across Australia, are facing the challenges and pressures of a post-COVID world.