Akasha Brewing Company have emerged from voluntary administration following their creditors accepting a Deed of Company Arrangement from the brewery's directors.
The Sydney brewery appointed Henry McKenna of Vincents as administrators on March 20, with Akasha saying it came as a result of declining customer demand, excise tax payments and a significant increase in excise tax.
In a media statement, founder and CEO Dave Padden said the restructuring sees the brewery in a stronger position to compete in the challenging market.
“This has been a very challenging time, but we have been humbled by the outpouring of support from our investors, customers and suppliers," Dave said.
"We are more determined than ever to ensure the success of Akasha moving forward and producing great beers for our loyal customers.”
This comes in the same week as Deeds Brewing announced they would cease operating after they failed to secure a sale or new investment while in administration. Akasha's announcement also comes as Black Hops looks set to be placed into liquidation and its assets sold off, according to Business News Australia. Business News Australia also reports that Black Hops' could have been trading insolvent as far back as December 2022.
We've reached out to Dave Padden and will update this story as we learn more. The full media release is below.
Media Release: Akasha Brewing Company Pty Ltd emerges from Voluntary Administration.
Last Tuesday, creditors of Akasha Brewing Company Pty Ltd (Akasha) approved the financial restructuring of the business by accepting the Deed of Company Arrangement (DOCA) proposal developed by the directors and recommended by Henry McKenna of Vincents.
The DOCA was signed this afternoon (May 8), and control of the business has now reverted back to Akasha’s management and the Directors.
It has been business as usual for Akasha through the administration period, with operations, sales and the Taproom operating as normal. Founder and CEO, Dave Padden said, “The restructuring ensures our business is in a much stronger position to compete in these challenging market conditions. Henry and the Vincents team have been a pleasure to work with, guiding us through this difficult period and ensuring we have the best chance of success moving forward.”
“This has been a very challenging time, but we have been humbled by the outpouring of support from our investors, customers and suppliers. We are more determined than ever to ensure the success of Akasha moving forward and producing great beers for our loyal customers.”
