An iconic drinks brand has been saved from liquidation after spending months in voluntary administration.
The drinks brand run by husband and wife Nathan and Felicity Cowan from Beechworth in northeast Victoria, Billson’s Brewery, was placed under administration in July.
Creditors McGrath Nicol last week outlined three options for the company: an end to administration, a company charter or liquidation.
The administrators recommended the second option because it offered the best return for creditors by allowing them to control how the company’s affairs are dealt with.
Mr and Mrs Cowan said they were “thrilled” by the result which secured the future of the business and the 159-year-old brewery where it is based.
“This morning, our creditors approved our proposal to restructure and recapitalize the company,” read a statement from the couple on social media.
‘This marks a fundamental milestone for us for which we are truly grateful.
“The restructure will allow us to refocus on what we love most – the Beechworth venue experience, our range of traditional flavors and the crystal-clear water of the on-site alpine spring.”
Iconic Australian drinks brand Billson’s Brewery (pictured) narrowly avoided liquidation after administrators were able to find a solution with unpaid creditors.
The couple thanked customers for their support for playing a “vital role in keeping Billson’s dream alive.”
“We look forward to sharing more details about our restructuring and plans in the coming weeks, but for now, we simply want to say thank you,” they wrote.
Billson’s produces pre-mixed drinks and craft beer and attributed its collapse to a sharp drop in customer spending amid rising inflation and high government taxes on spirits.
The collapse of the business comes even though annual sales soared to around $120 million in 2023-24, up from $100 million the previous year.
In January, Billson’s employed approximately 200 staff members.
However, by February the company had halved this number to 100 in an effort to cut costs, and administrators planned to implement further job cuts.
Among the company’s assets is the historic Beechworth brewery, which has become a popular tourist attraction offering tours, accommodation, a beer garden and a speakeasy.
Chairwoman of local business advocacy group Beechworth Inc, Katerina Witherow, said the company is a “big player” in the town’s economy and she was happy to see it continue to operate.
Owners and husband and wife team Nathan and Felicity Cowan (pictured) said they were “delighted” the administrators had secured the future of the business and the historic brewery.
“It’s been a difficult time for businesses to trade post-COVID,” he told the ABC.
“Especially in these times, it’s very hard and difficult right now and we have a lot of empty stores in the city.”
Witherow added that he hoped the owners had “learned a lot of lessons” about how to manage the brewery to keep it afloat.
The fact that Billson was saved at the last minute is one of the few victories for the alcohol industry, which has seen several independent breweries collapse over the past year.
Most recently, administrators were appointed on September 23 for Queenscliff Brewhouse in Queenscliff, southeast of Geelong.
The venue offers a wide range of craft beer, gin and whisky, as well as a ‘microbrewery’, a distillery, a winery and a family-run bistro that has a 4.2-star rating on Google.
Young Henrys craft brewery founder Richard Adamson has accused Prime Minister Anthony Albanese of abandoning the industry which contributes $1.93 billion to the national economy each year and employs around 10,000 people.
“When he was in opposition he supported and helped pass the remissions (for excisable alcohol) scheme (in 2021),” Adamson, who is also president of the Inner West Breweries Association, previously told Daily Mail Australia .
“But I guess he has more important things to do right now (than help us).”