Adnams open to sale as brewing sector faces funding squeeze

Published

1 year ago

March 30, 2024

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Adnams, one of the most historic names in British brewing, is to explore an outright sale amid a funding squeeze across the industry which has triggered a growing wave of insolvencies.

Sky News has learnt that Adnams has begun contacting prospective investors and buyers after hiring advisers earlier this year to shore up its finances.

A source close to the 134 year-old Suffolk brewery acknowledged that a full sale of the company was now an option, having indicated last month that it was not under consideration.

They insisted, however, that Adnams’ preferred routes to raising capital remained a funding injection from a high net worth investor or family office.

The sale of some of its freehold assets from its estate of pubs and inns would also be considered, they added.

The objective of the plan is said to be to raise capital to pay down bank debt and fund further growth initiatives.

Advisers from Alvarez & Marsal are working with the company, which remains partly owned by members of its founding family.

A spokesman for Adnams, whose B-shares are listed on the junior stock market Aquis, told Sky News last month: “We have instructed advisors to explore a range of options to fund our future growth plans.”

It declined to comment further on the possibility of a sale.

The appointment of A&M comes several months after Dr Jonathan Adnams, the company’s long-standing chairman, told investors that continued inflationary pressures were having a detrimental effect on consumer demand.

Operating losses in the first half of its financial year increased to £2.4m on flat revenues of about £30m.

Dr Adnams pointed to the ongoing slump in the number of pubs across Britain, and a 25% decline in the size of the cask beer market since 2019.

Adnams’ best-known products include a strong ale called Broadside, Kobold lager and Blackshore stout.

It has also diversified into the no and low-alcohol beer categories, with Ghost Ship, a 0.5% ABV product, now among its bestsellers, particularly during the ‘dry January’ adopted by many consumers.

Adnams’ name now also adorns a range of wines, such as Tally-ho, as well as gin and whisky.

The company was founded in 1890, although family members George and Ernest Adnams had originally purchased the Sole Bay Brewery 18 years earlier.

The Adnams family remains the company’s largest shareholder, with Dr Adnams, the chairman, owning a stake of approximately 20%.

The business is run by Andy Wood, who joined it in the mid-1990s and became chief executive in 2010.

Last week, it announced that Mr Wood would be replaced in June by Jenny Hanlon, its finance chief.

In that announcement, Ms Hanlon said it was important to “keep evolving and keep innovating – our brand and product portfolio, our brewing, distilling and distribution operations and our estate – while continuing to support our customers, communities and colleagues with the same values and commitments which have served us so well”.

Dr Adnams described her as “the ideal candidate to lead us through the next chapter of Adnams’ evolution, both in stabilising our financial footing but also capitalising on Adnams’ unique strengths.”

Adnams boasts an illustrious board including the veteran marketer Steven Sharp and Simon Townsend, the former boss of pub giant Ei Group.

Sacha Berendji, a senior Marks & Spencer executive, is also a non-executive director of the brewery.

Its Aquis-listed shares have fallen by about two-thirds during the last year, although its minuscule market capitalisation of just £9m is misleading because only a small proportion of its shares are traded.

The search for new capital comes after a series of bankruptcies in the brewing sector.

Last year, Yorkshire-based Black Sheep collapsed into administration before being bought by Breal, an investment firm.

Breal has since acquired a number of other distressed players, including Purity Brewing Company, the owner of Session IPA.

Leeds-based North Brewing Co also fell into administration earlier this year before being sold to a local industry executive.

Business

UK growth slows as economy feels effect of higher business costs

Published

50 mins ago

August 14, 2025

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UK growth slows as economy feels effect of higher business costs

UK economic growth slowed as US President Donald Trump’s tariffs hit and businesses grappled with higher costs, official figures show.

A measure of everything produced in the economy, gross domestic product (GDP), expanded just 0.3% in the three months to June, according to the Office for National Statistics (ONS).

It’s a slowdown from the first three months of the year when businesses rushed to prepare for Mr Trump’s taxes on imports, and GDP rose 0.7%.

Caution from customers and higher costs for employers led to the latest lower growth reading.

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Business

Claire’s to appoint administrators for UK and Ireland business – putting thousands of jobs at risk

Published

15 hours ago

August 13, 2025

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Fashion accessories chain Claire’s is set to appoint administrators for its UK and Ireland business – putting around 2,150 jobs at risk.

The move will raise fears over the future of 306 stores, with 278 of those in the UK and 28 in Ireland.

Sky News’ City editor Mark Kleinman reported last week that the US-based Claire’s group had been struggling to find a buyer for its British high street operations.

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Prospective bidders for Claire’s British arm, including the Lakeland owner Hilco Capital, backed away from making offers in recent weeks as the scale of the chain’s challenges became clear, a senior insolvency practitioner said.

Claire’s has now filed a formal notice to administrators from advisory firm Interpath.

Administrators are set to seek a potential rescue deal for the chain, which has seen sales tumble in the face of recent weak consumer demand.

Claire’s UK branches will remain open as usual and store staff will stay in their positions once administrators are appointed, the company said.

Will Wright, UK chief executive at Interpath, said: “Claire’s has long been a popular brand across the UK, known not only for its trend-led accessories but also as the go-to destination for ear piercing.

“Over the coming weeks, we will endeavour to continue to operate all stores as a going concern for as long as we can, while we assess options for the company.

“This includes exploring the possibility of a sale which would secure a future for this well-loved brand.”

The development comes after the Claire’s group filed for Chapter 11 bankruptcy in a court in Delaware last week.

It is the second time the group has declared bankruptcy, after first filing for the process in 2018.

Chris Cramer, chief executive of Claire’s, said: “This decision, while difficult, is part of our broader effort to protect the long-term value of Claire’s across all markets.

“In the UK, taking this step will allow us to continue to trade the business while we explore the best possible path forward. We are deeply grateful to our employees, partners and our customers during this challenging period.”

Susannah Streeter, head of money and markets at Hargreaves Lansdown, said: “Claire’s attraction has waned, with its high street stores failing to pull in the business they used to.

“While they may still be a beacon for younger girls, families aren’t heading out on so many shopping trips, with footfall in retail centres falling.

“The chain is now faced with stiff competition from TikTok and Insta shops, and by cheap accessories sold by fast fashion giants like Shein and Temu.”

Claire’s has been a fixture in British shopping centres and on high streets for decades, and is particularly popular among teenage shoppers.

Founded in 1961, it is reported to trade from 2,750 stores globally.

The company is owned by former creditors Elliott Management and Monarch Alternative Capital following a previous financial restructuring.

Business

Typical two-year mortgage deal at near three-year low – below 5% since mini-budget

Published

16 hours ago

August 13, 2025

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Typical two-year mortgage deal at near three-year low - below 5% since mini-budget

The average two-year mortgage rate has fallen below 5% for the first time since the Liz Truss mini-budget.

The interest rate charged on a typical two-year fixed mortgage deal is now 4.99%, according to financial information company Moneyfacts.

It means there are more expensive and also cheaper two-year mortgage products on the market, but the average has fallen to a near three-year low.

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Not since September 2022 has the average been at this level, before former prime minister Liz Truss announced her so-called mini-budget.

The programme of unfunded spending and tax cuts, done without the commentary of independent watchdog the Office for Budget Responsibility, led to a steep rise in the cost of government borrowing and necessitated an intervention by monetary regulator the Bank of England to prevent a collapse of pension funds.

It was also a key reason mortgage costs rose as high as they did – up to 6% for a typical two-year deal in the weeks after the mini-budget.

Why?

The mortgage borrowing rate dropped on Wednesday as the base interest rate – set by the Bank of England – was cut last week to 4%. The reduction made borrowing less expensive, as signs of a struggling economy were evident to the rate-setting central bankers and despite inflation forecast to rise further.

It’s that expectation of elevated price rises that has stopped mortgage rates from falling further. The Bank had raised interest rates and has kept them comparatively high as inflation is anticipated to rise faster due to poor harvests and increased employer costs, making goods more expensive.

The group behind the figures, Moneyfacts, said “While the cost of borrowing is still well above the rock-bottom rates of the years immediately preceding that fiscal event, this milestone shows lenders are competing more aggressively for business.”

In turn, mortgage providers are reluctant to offer cheaper products.

A further cut to the base interest rate is expected before the end of 2025, according to London Stock Exchange Group (LSEG) data. Traders currently bet the rate will be brought to 3.75% in December.

This expectation can influence what rates lenders offer.