record-breaking crowdfunding campaign in 2022 that raised $2.2 million from almost https://www.businessnewsaustralia.com/1,000 investors in 24 hours.
Black Hops was founded by Daniel Norris, Michael McGovern and Edward Oldfield, who initially undertook a non-equity crowdfunding campaign in 20https://www.businessnewsaustralia.com/16 to help fund the company’s first taproom at Burleigh Heads.
Oldfield and McGovern remain the company’s biggest shareholders with 29.83 per cent and https://www.businessnewsaustralia.com/10.82 per cent holdings respectively.
Norris, who formerly held as many shares as Oldfield, parted ways with the company in February last year and the company bought back his shareholding of four million shares for a total of $https://www.businessnewsaustralia.com/1 in January this year.
Black Hops expanded with a new Gold Coast brewery and tap room at Biggera Waters in 20https://www.businessnewsaustralia.com/19 when it started selling products interstate to hospitality venues and retail outlets.
Following the acquisition of Semi Pro Brewing Co in 2020, the company launched its Brisbane taproom and in 202https://www.businessnewsaustralia.com/1 added a new venue on the Gold Coast – the AWOL Barrel Aged Beer & Taproom in Burleigh Heads, which was later rebranded as the Haven Bar & Restaurant. The Haven Bar venue has since been closed.
Prior to the appointment of administrators, Black Hops Brewing had 59 staff operating from three locations, including a tap room at East Brisbane which was closed after administrators were appointed due to an issue with the lease.
The administrators reveal that Black Hops has been running at a loss since FY22, with the cumulative trading losses over the past three years currently sitting at $2.85 million.
The company last posted a net profit in FY2https://www.businessnewsaustralia.com/1, totalling $867,233. This was followed by a loss of $https://www.businessnewsaustralia.com/1.45 million in FY22, despite revenue spiking to a record high of $https://www.businessnewsaustralia.com/16.26 million.
Revenue dropped to $https://www.businessnewsaustralia.com/14.89 million in FY23, leading to a loss of $854,306 while the FY24 year to date shows revenue of $8.82 million and a running net loss of $544,53https://www.businessnewsaustralia.com/1.
The administrators reveal that sales for FY24 are tracking 20 per cent lower than the previous year. While gross profit margin has remained steady between 76 per cent and 79 per cent, the company’s profitability suffered as costs failed to fall in line with the drop in revenue.
“Our investigations are preliminary and are at an early stage, however, it is our view that the company was insolvent by at least https://www.businessnewsaustralia.com/1 December 2022,” say the administrators.
“A cause of action for trading whilst insolvent may potentially exist against the current and former directors of the company, however, further investigations are required should a liquidator be appointed to the company.”
The administrators have also investigated transactions that may be classed as voidable which may be further pursued by a liquidator.
Despite the troubles facing Black Hops Brewing, the administrators have received 28 inquiries from parties interested in buying the company’s assets – with four non-binding offers received and three of these parties shortlisted.
“If a suitable offer is selected to proceed, we expect that an agreement for the sale of the company’s business and assets will be executed on or around https://www.businessnewsaustralia.com/10 May 2024 (if not earlier),” say the administrators.