An Australian beer and spirits maker has gone bust, joining a growing list of companies that have closed their doors due to the cost of living crisis.
Mighty Craft, which owns 33 percent of Better Beer, has filed for bankruptcy after struggling to emerge from its financial troubles.
In their websiteMighty Craft claims to be one of Australia’s leading and fastest growing premium craft drinks companies.
The company listed on the ASX just five years ago and was once worth $1.8 million.
Mighty Craft had been desperately trying to stay afloat by seeking a merger, selling assets and brands and cutting its board and management.
Insolvency firm Ankura has been appointed as administrator of Mighty Craft.
Investors were told administrators were conducting an “urgent assessment” of the company’s situation with management and the board.
Most of Mighty Craft’s revenue comes from its 33 percent stake in Better Beer.
An Australian beer and spirits maker has gone under, joining a growing list of companies that have closed their doors due to the cost of living crisis (file image)
Better Beer is 46 percent owned by comedians Matt Ford (pictured left) and Jack Steele (pictured right) of The Inspired Unemployed.
Comedians Jack Steele and Matt Ford of The Inspired Unemployed have a 46 percent stake in Better Beer.
Co-founder Nick Cogger owns 18 percent of Better Beer, which launched in October 2021.
Mr Cogger said Mighty Craft’s administrative procedures are simply “business as usual” for Better Beer.
“At some point in the future, someone or a company will file a DOCA (deed of company arrangement) and we will likely have a new shareholder on our register,” Cogger told Business News Australia in a statement.
‘We look forward to officially parting ways with Mighty Craft in the coming months.’
Records show that Better Beer has performed well, despite the decline in the craft beer market.
In the six months to December 31, sales rose 32 percent to $26.1 million.
The proposed merger between Mighty Craft and Better Beer now looks like it won’t happen.
“The company has been undergoing a divestment and restructuring program to reduce the company’s debt,” the company said in a statement to the ASX.
Better Beer co-owner Nick Cogger said Mighty Craft’s administrative procedures are simply “business as usual” for Better Beer.
‘A key element of this programme was the proposed merger between Better Beer Holdings Pty Ltd and MCL (Mighty Craft), a deal which required the support of MCL’s principal lenders and Better Beer’s shareholders.’
Mighty Craft’s fall into administration is the latest shock for the craft beer industry.
Late last month, popular Melbourne brewery Alchemy Brewing announced it would be closing.
Lion, one of the world’s largest drinks companies, will close the Malt Shovel brewery in Camperdown, Sydney, at the end of August after more than three decades.
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