Craft brewer Magic Rock has filed notice of intent (NOI) to appoint administrators.
Legal firm Fladgate filed the NOI on behalf of the In Good Company-owned outfit on Monday (6 January). The move will protect the supplier from claims by creditors while it seeks a solution to its financial woes, the extent of which remain unclear.
Magic Rock Brewing Co, which was founded by Huddersfield businessman Richard Burhouse in 2012, was sold to IGCO along with London’s Fourpure by previous owner Lion in August 2022.
Fourpure was placed into administration by IGCO in October last year in order to “protect the brand from future liability, the ongoing market pressures and tough commercial realities”, its owner said at the time.
IGCO subsequently paid just £100,000 to acquire the brewery’s goodwill and intellectual property rights. Creditors including HMRC – owed more than £1.9m – and unsecured creditors – owed £3.7m – are likely to see a shortfall as a result of the administration.
Fourpure’s London brewery, meanwhile, was closed by IGCO in August last year, with production shifting to Magic Rock.
Beers from both breweries remain stocked in grocery multiples including Asda, Waitrose and Morrisons.
Magic Rock’s accounts for the year ended 31 December 2022 are now more than a year overdue on Companies House.
Its last available accounts show the business recorded as pre-tax loss of £64k in the year ended 31 December 2021. Turnover, meanwhile, fell 9.7% to £5.3m.
The brewer had an average of 65 employees in 2021, although this number is now understood to be significantly lower.
The Grocer has approached IGCO for comment.
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