Wayward Brewing and the Local Drinks Collective (LDC) distribution company they launched with Batch Brewing Co in 2022 have exited a period of voluntary administration with the existing owners still in charge.
The news comes just over three weeks after they entered administration, looking to return the two operations to a cash flow positive state, and describing the move as the last stage of restructuring the business. After a creditors' meeting today (January 24), the owners of the Camperdown-based brewing company agreed to pay ten cents on the dollar to creditors.
Peter Philip, director of both companies, told The Crafty Pint that today's decision secures the jobs of his employees, and said it was very much business as usual for Wayward and LDC.
"We struggled with the decision," he says of the move to enter administration. "It wasn't an easy one to come to. I explored all other options, tried to raise some capital, but there was no other option."
He says that, as sole director, he is funding the DOCA, and remortgaging his house to do so, adding: "This was to protect the company and protect 40 jobs. Forty people are still employed. The ATO and other creditors have lost out; I'm sorry but that's what I had to do as a director."
In an article published on the site earlier today, we touched upon the ripple effect the spate of VAs over the past year and more can have on the industry, not just directly on the suppliers and other creditors who take a financial hit, but on peers in the industry who can find new conditions imposed on them by suppliers and the ATO as a result.
Peter says that, from the perspective of a business that's been through administration: "What a lot of people don't understand is that, going through the process, you kind of become a pariah: everybody just cracks down on you."
The result of changed conditions on his companies, he says, is that working capital requirements "have gone through the roof", describing the situation as akin to "being back at the beginning when you're starting a business."
"I understand that there can be a lot of sour grapes, and if people are solvent and doing the right thing I appreciate that and applaud what they are doing. But we had no choice," he says, adding: "It's not an easy process, and I wouldn't wish it on my worst enemy."
Looking ahead, he said Wayward will continue to operate as beforehand, continuing to explore other sectors of the drinks market. They recently launched a hop water and have also introduced a citrusy drink inspired by the likes of Suntory 196.
"If independent craft beer is in a bit of a slump – and it is, but that's not going to last forever," he says, "then if 20-year-olds want to drink a citrusy, Sochu-based drink we'll make them."
He also says there are ongoing discussions with other breweries that he expects will lead to more joining the Local Drinks Collective.
As for the experience of recent weeks, he says: "The support from customers and the community has been amazing. We've seen a bump in trade at the taproom; everybody has been coming in asking how they can help. I'm sure that's a short-term thing but it has been very appreciated. The outpouring from independent brewers has been great.
"I believe in the industry and want it to succeed. I want the IBA [Independent Brewers Association] and [CEO] Kylie [Lethbridge] to succeed. We need to stick together."
You can read a media release on today's news below. The announcement comes a year to the day after Ballistic Beer Co entered voluntary administration; The Crafty Pint has put together a timeline documenting the turbulent 12 months that followed. You can read The Year Of Living Precariously here.
Media Release (24/1/24): Wayward Brewing Co. and Local Drinks Collective emerge from administration after a financial restructuring
Wayward Brewing Company Pty Ltd (Wayward) and Local Drinks Collective Pty Ltd (LDC), have successfully emerged from voluntary administration after creditors today approved a financial restructuring of the companies.
Peter Philip, as sole director of both companies, appointed DBA Reconstruction & Advisory as Administrator on 2 January 2024. This was a necessary step to deal with financial losses from a difficult period for the business.
Peter and his team have 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 Peter and the companies’ management.
Peter noted that under administration it’s been business as usual: “Beer production, sales and distribution and taproom operations have not missed a beat since we entered administration.”
Looking forward, Peter added: “We are grateful that our restructuring proposal has been approved by the creditors and we thank the administrator, our business partners and our employees for their support during the restructuring process, which has been the most stressful time of Wayward’s 10+ year history. It is a great result that nearly 40 jobs have been saved in the process.
“This has been a very challenging time, but we have been overwhelmed by the outpouring of support from our customers and business partners. Our team are more determined than ever to make the business a success by producing great independent craft beverages for our loyal customer base.
“I am looking forward to putting this difficult period behind us and I look forward to a great future for Wayward and LDC.”
James Smith launched The Crafty Pint in 2010, two years after moving to Australia from the UK. He was taken to Mountain Goat within weeks of landing in Melbourne, joined their indoor cricket team, and is still navigating the rabbit hole that is craft beer to this day.
The beers that turned you on to good beer:
- Watching pints of McEwan's 80 Shilling settle when visiting family in Edinburgh.
- Pints of flat Bass from the jug at the Cap & Stocking in Kegworth.
- A first Paulaner Hefeweizen when working in Munich in 1998: “This smells of bananas!”
- Castle Rock Harvest Pale – how could a 3.8 percent ABV beer be so good? (It turns out it was an early example of the three Cs – Cascade, Centennial and Columbus – in an English bitter).
- Dogfish Head 90 Minute IPA poured through hops at the Sunset Grill in Cambridge, MA, in the company of a man who turned out to be the Beer Nut (while we were both covering a double murder case at the time).
- Ordering a Mountain Goat Hightail on my first day as an Aussie resident as it was local and I’d never heard of it; “A dark Australian beer; well I never…”
- Murray’s Icon 2IPA at Beer DeLuxe Fed Square, recommended by a guy I’d not long known who's now the main man at Fixation, served by Mik Halse, now head of sales at Hawkers. How could an Australian beer smell as good as that?!?
You've got three beers to turn someone else on to good beer; what are they and why?
- Any really good, fresh and balanced West Coast style IPA. Punchy hop aromatics are the most obvious way to capture someone's attention and these IPAs, done well, present the key components in beer (if you're sticking to just water, malt, hops and yeast) in harmony yet with the volume turned up.
- Saison Dupont. Arguably a selfish choice here as I bloody love the broad saison style and dearly hope it will finally take hold in Australia one day. Given a choice, I'd probably crack one enlivened with Brettanomyces like Molly Rose Matilde for myself but, when it comes to turning on someone new, you've got to go with the classic.
- Rodenbach Caractère Rouge. Because if you don't enjoy or can't appreciate this beer, I'll never win you over. And because Filip, the fruit and wood specialist at Rodenbach that designed it, is a beautiful human.
The last beer you enjoyed:
Fixation IPA at The Incubator.
Three things that represent you:
- The Soft Bulletin by The Flaming Lips
- Catch-22 by Joseph Heller
- Golden Plains
NB All articles written by James in the first eight years of the site appear as By Crafty Pint. Today, that's used for collaborative efforts by the wider team.
