Australian-owned Fox Friday Brewing Goes into Administration
Tasmania’s Fox Friday Craft Brewery announced on Wednesday it has entered voluntary administration. The company took a major financial hit after one of its lenders collapsed. The collapse has put pressure on the company’s breweries nationwide.
Founds Sarah and Ben Hooper said the decision was one that they made with “heavy hearts.”
“While we understand that there will be some uncertainty as a result of this decision, we very much intend to come through the other side of this and we hope that Fox Friday and its subsidiaries will continue to operate well into the future.”
The Collapse of Falcon Capital
The collapse of Falcon Capital instigated Fox Friday’s financial troubles. Falcon Capital is currently under investigation for the misuse of investor funds and making risky “illiquid investments.”
Falcon Capital is reportedly one of several businesses that financial supported the brewery. The Hoopers said the financial setback from Falcon is what led them to dip into operational funds.
Despite attempting to find new equity partners and lenders, the Hoopers were unable to overcome the complexity of the situation.
Plans Going Forward
The Fox Friday owners have appointed McGrathNicol to oversee the process while they figure out a sale or recapitalisation plan.
“Our focus is on working with Fox Friday Group employees, customers and key suppliers to stabilise operations and maximise outcomes,” McGrathNicol said in a statement.
The collapse of the brewery’s primary lender has put pressure on the business’ operation in three states. The company currently has locations in Hobart, Melbourne, and Perth. Additionally, it acquired Moonah Hotel and Cellars and Carwyn Cellars as subsidiaries in 2023. The subsidiaries will also enter administration.
Fox Friday Craft Brewery started as a small operation in 2016 before the Hoopers purchased it in 2019. They announced their plan to build breweries in Melbourne and Hobart in 2021. In 2023 the company’s growth continued as they purchased the original Blasta Brewing site.
Despite entering administration, the owners of the brewery still intend to be involved in the upcoming beer festivals such as Pint of Origin.
Sources:
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