Derby Brewing Company puts pub arm into administration

The Derby Brewing Company has put its pub arm into administration after struggling with a five-fold increase in energy costs and difficulty repaying Covid debt.

The craft brewery said it had been unable to survive an “extremely challenging period” while having to pay back arrears built up during the pandemic to HMRC.

It has called in administrators for the seven-strong Real Brewing Pub Company.

Three pubs, the Clubhouse in Derby, the Pig in Lichfield, and the Pointing Dogs in Matlock have closed with immediate effect.

Two freehold sites in Derby, the Greyhound and Derby Brewing Tap House, will be sold to clear debts and remain open while being marketed by the administrator.

The brewery will continue to operate and its two remaining pubs, the Hole in the Wall in Mickleover and NOTSA in Aston on Trent, will trade under a new pub company.

In a post on social media, the Derby Brewing Company said all staff would be paid and the company would continue in “a different and smaller guise”.

“It is with huge regret that we have been unable to steer the business through this extremely challenging period,” said Paul Harris, managing director of Derby Brewing Company.

“We have unfortunately joined a growing list of operators to close previously successful businesses.

“The final nail in the coffin was a combination of the government allowing energy contracts five-fold previous levels to remain in place once their 50% support was removed and the in our view unreasonable behaviour of the HMRC.

“We are extremely sad for the team members who have lost their jobs and the dismantling of a business we as a family have built over nearly 20 years.”

Trevor Harris, director of brewing at Derby Brewing Company, said the business would return to a smaller family operation that the team hoped to build upon.

The number of UK breweries falling into insolvency has tripled over the last year, according to analysis by accountancy firm Mazars.

This has included Manchester Brewing Co, which closed in January, while Southampton's Unity Brewing Co shut its doors in February. In August, London’s Brew By Numbers was saved from collapse by investor Breal Capital after struggling with a drop in customer spend and rising costs.

Image: Derby Brewing Company / Facebook