The iconic Black Sheep Brewery is calling in administrators, after failing to find a buyer or a financial backer.

Earlier this month, the Company announced it had commenced a review of its strategic options, including the possibility of a sale because of 'constraints on its funding'.

But now the board says it will appoint Kristian Shuttleworth and Clare Boardman of Teneo Financial Advisory as administrators to the Company and BSB Retail Limited 'to protect the interests of its creditors'.

Charlene Lyons, chief executive and executive chair of Black Sheep Brewery, said: “The directors have done their utmost to deliver new investment into the existing corporate structure.

The Northern Echo: Jo and Rob Theakston who have key roles in the businessJo and Rob Theakston who have key roles in the business (Image: Press release)

"This has not been possible, but we are progressing with our discussions around a sale of the business. Black Sheep Brewery has great products, a compelling brand and is supported by a dedicated team of people who are capable of delivering great results for the business in a different structure.

"We are focused on achieving continuity of the business and employment and thank everyone for their support so far. We have taken the decision to protect the business and its creditors, during this period, by filing a notice of intention to appoint administrators.”

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“The business has been hit very hard by the pandemic and the sudden rise in all costs. Covid loans were useful but, in the end, could not sufficiently compensate for reduced cash flow in the long term. It has been the perfect storm, but the team are confident that with a new structure Black Sheep will thrive and grow as the team set course in a new direction.”

Black Sheep was set up by Paul Theakston following Theakston being sold to a larger brewer (Scottish & Newcastle), before Theakston Brewery was bought back by the family in 2003 and has been in family control ever since.

It has continued to champion its independence and remains with Paul's family with his sons Rob and Jo playing key roles in the brewery’s daily operations.