Dainton Beer have emerged from voluntary administration today after creditors approved their Deed of Company Arrangement (DOCA), with control of the business returning to Dainton's management team, and with Dan Dainton as CEO.
The announcement comes less than a month after the brewery appointed administrators. Dan told The Crafty Pint the decision means their equity shareholders can continue to have the same involvement with the business.
"It's great to get it over the line," he said. "A few of the really great things is our staff get to keep their jobs, our customers get to keep drinking our beer, and our shareholders get to keep being part of the journey as well."
Dan says it follows a tough year for the business, particularly in regards to wholesale, which had already seen them restructure the business and lose staff.
"We were completely overstaffed with the turnover that we had," Dan added. "It was just unfortunate that the industry and economy had sort of gone that way and we needed to pivot."
He says it will largely be "business as usual" for the time being, with the venues still running and busy in the leadup to Christmas. However, they will look to make further changes to their operations over the coming weeks.
They hope to continue to work positively with their suppliers, with Dan saying they will continue to need some level of support and assistance.
"I've been extremely open and honest with all of them," he said. "The message I've said is, 'This is horrible, we didn't get into this to harm any relationships, we didn't get into this to have any free wins with creditors.'
"It really was an untenable situation for us; we had a massive debt to the ATO that we couldn't pay back in the timeframe they required."
"It will be challenging; I believe most are understanding and I feel for them; some of those are family businesses as well.
"It's not just going to be us that's going through this, it's going to be a lot - so there is going to be a flow-on effect for suppliers."
The full media release is available below.
Media Release: Dainton Beer emerges from administration after a financial restructuring
Daicom Australia Pty Ltd trading as “Dainton Beer” (Dainton), has successfully emerged from voluntary administration after creditors today approved a financial restructuring of the business.
Dainton’s directors appointed DBA Advisory as Administrator on 20 November 2023. This was a necessary step to deal with financial losses from a difficult period for the business.
Dainton’s directors worked with the Administrator to develop a compelling Deed of Company Arrangement (DOCA) proposal to financially restructure the business, to ensure a stronger and more resilient operation moving forward. The Administrator recommended that creditors accept the DOCA proposal to provide the best outcome to creditors.
The DOCA was signed after the meeting of creditors today, so control of the business has reverted to Dainton’s management, headed by Dan Dainton as Founder and CEO.
Dan noted that under administration it’s been business as usual: “The administration process didn’t change the way we operated in the slightest. Beer production, sales and taphouse operations have not been impacted.”
Looking forward, Dan added: “After a rather challenging period for the business, we are grateful that our restructuring proposal was approved. We are excited at the opportunities ahead and being able to return Dainton to a position of strength. Moreover, we are relieved and proud that our shareholders, employees and customers can continue the journey with us. Without them, there would be no Dainton.”
Dainton remains committed to producing quality beer and providing memorable experiences for their customers and community.
Will Ziebell is a history graduate who knows more about The Wire than he does about beer. He was awarded the AIBA Best Media trophy for 2018; HBO have told him to please send his fan mail elsewhere. He can be found on Instagram, Twitter and TikTok.
The beer(s) or moment(s) that turned you on to good beer:
Spending time living in the UK (and backpacking across Europe) when I was 21 certainly gave me a better understanding of the beer and different styles of the world. But I'd say it was a holiday to the High Country a little while later when lunch and a tasting paddle at Bridge Road Brewers created an obsession with Australian breweries and locally made beer.
You've got three beers to turn someone else on to good beer; what are they and why?
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Boatrocker's Miss Pinky: It's a raspberry-packed Berliner Weisse that neither looks or tastes the way many people conceive of beer.
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Bad Shepherd Hazelnut Brown: A luscious mix of chocolate and hazelnut that can appeal to the sweet tooth within us all.
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Stone & Wood Pacific Ale: As the father of my oldest friend once said to me: "It's the perfect refreshing pint that smells like they've loaded it with the God's herb."
The last beer you enjoyed:
Garage Project's DFA while sitting at the bar at Miss Moses as the sounds of The Rolling Stone drifting in the background.
Three things that represent you:
- Bruce Springsteen
- Ken Burns
- The State Library of Victoria
