Fri, 06 Oct 2023 | ADMINISTRATION
Liverpool’s Love Lane Brewery Limited has fallen into administration in the face of significant headwinds. Administrators have mothballed the brewery operations while they seek a buyer and say they are in talks with several potential buyers.
The business, like many breweries and hospitality firms, has faced severe headwinds in recent years, including inflation and fuel price hikes. According to the company, the challenges the company faced were “too great” for it to continue operating.
Despite “considerable investment” in the business early this year, a company spokesperson said that it had “struggled to get back to the heights of pre-COVID sales.” As a result, Paul Stanley and Jason Greenhalgh of Begbies Traynor were appointed as joint administrators on October 5.
A company spokesperson said: "The business has made a significant impact and there are several conversations in play with potential purchasers and we would hope one of these will materialise quickly and for Love Lane products to get back on the shelves once more."
While the company is in administration, Love Lane Brewery Bar & Kitchen will trade as normal, with all functions continuing to take place.
Joint administrator and Begbies Traynor Regional Managing Partner Paul Stanley commented: "This is a difficult time for the leisure and hospitality sector in general. Many small breweries have launched during the past decade and the craft beer industry was going strong until economic conditions dramatically changed.”
"More recently, as the majors have introduced their own corporate versions of craft beer onto the pumps, the smaller brewers are finding it even tougher to compete and we have seen a huge rise in the number of microbrewery businesses seeking financial help.”
Regarding the sale of the business, Paul Stanley added: "We have mothballed the brewery whilst a buyer is sought. We are already speaking with potential purchasers and are working proactively to make a deal happen."
Find out more about the headwinds facing UK craft breweries
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