KAIJU! Beer have emerged from voluntary administration after creditors unanimously approved a Deed of Company Arrangement put forward by the founders.
It means Callum and Nat Reeves will keep control of the brewery they launched with their family, with Callum saying in a media statement that they were excited about the opportunities ahead for the indie brewery.
"We are confident the restructuring will ensure the business is in a stronger position to compete in challenging market conditions,” he said.
KAIJU!'s overarching South East Brewing Company appointed DBA Reconstruction and Advisory on January 8. The founders called it a necessary decision to handle the debt they'd accumulated over a number of years, including an excise bill owed to the Australian Taxation Office.
As a result, Callum was required to resign as chair of the Independent Brewers Association (IBA) due to a requirement within the IBA's constitution that board directors must step aside if their breweries enter administration.
Further details on the approval of the DOCA can be found in the media release below.
The Crafty Pint has examined the challenges faced by the industry that have contributed to the ongoing spate of VAs in recent years in a number of articles, including a two-part Secret Brewer mini-series covering many of the hotly-debated issues which you can read here and here.
Media Release: South East Brewing Company Pty Ltd (trading as KAIJU! Beer) emerges from administration after financial restructuring
South East Brewing Company Pty Ltd (KAIJU! Beer) has successfully emerged from voluntary administration after creditors today approved a financial restructuring of the business.
The Company’s directors appointed DBA Reconstruction & Advisory as Administrator on 8 January 2025. This was a necessary step to deal with an accumulation of debt from a difficult period for the business, stemming from increased production costs (including excise and container deposit schemes) and declining consumer demand.
The Company’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 business 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 the company’s management, headed by Callum Reeves and Nat Reeves, the founders of KAIJU! Beer.
Callum noted that under administration it’s been business as usual: “The administration process didn’t change the way we operated at all. Beer production and sales have not been impacted.”
Looking forward, Callum added: “After a challenging period for the business, we are grateful that our restructuring proposal was unanimously approved. Through a challenging time for the business, we have been heartened by the support of our customers and supply partners.”
“We are excited at the opportunities ahead and being able to return KAIJU! Beer to a position of strength. We are confident the restructuring will ensure the business is in a stronger position to compete in challenging market conditions.