Buyers are being sought for Epic after it went into liquidation.
Buyers are being sought for Epic after it went into liquidation.
Kiwi craft beer brewer Epic Brewing Company has gone into liquidation.
Waterstone Insolvency were appointed liquidators by Epic’s shareholders on Tuesday.
Waterstone Insolvency director Adam Botterill told the Herald they were looking for buyers for the brewer.
“We are running the business as a going concern at the moment. We’restill trading. We’ve engaged staff on a short-term basis to keep the business running so we can run a sale process,” he said.
“We think there is a lot of value in the company in terms of the brand. It’s a really well-known beer brand sold in supermarkets and [has] quite a lot of distribution. It’s got a big market presence.”
The sale process had opened today, Botterill said.
Epic founder and director Luke Nicholas, who started the craft beer brand in 2007 and now runs it with wife and co-owner Wendy, told the Pursuit of Hoppiness the decision was a sudden one after a deal with an investment partner fell through without notice.
Nicholas said that deal was to build their own brewery and taproom in Mt Wellington as its current business model – which sees Epic brewed under contract at Steam Brewing in Otahuhu – was not viable long-term.
“We’d been working on a project to set up a brewery and a new taproom, but we’ve been struggling to get it through Auckland Council — there were long delays getting resource consent... while we were waiting, our investor had been helping us with cashflow,” Nicholas told the Pursuit of Hoppiness.
But all of a sudden the investor lost their appetite for the project.
Margins had also been getting skinnier amid rising costs.
Botterill didn’t place a value on the business.
“We’re essentially going to be opening it for offers,” he said.
“There is stock there. We think there’s better value as a package with the brand as well as the stock and the taproom. It has a hospitality venue that showcases its products and beers.”
If no suitable offers are received, they would look at a close down of the business and selling individual components, he said.
“Obviously we’re open to offers for individual parts for it, so if someone wants to buy the brand but not the stock, or vice versa.”
Epic Brewing founder Luke Nicholas. Photo / Brett Phibbs
Botterill said to keep trading they had kept the staff on.
“We offered all staff contracts under the liquidation so we can run this process,” he said
