Sites set to be sold after Derby Brewing pub division enters administration

Administrators are marketing two freehold pub sites for sale after Derby Brewing Company placed its pubs division, Real Brewing Pub Company, into administration. Derby Brewing Company says it has faced a challenging trading environment and also blamed what it called the “unreasonable behaviour of HMRC”.

Many pubs and small craft breweries have faced difficulties over the past few years, amid soaring costs for food and energy, the rising cost of living and the ongoing effects of the COVID-19 pandemic, leading to sharp increases in insolvencies.

Derby Brewing Company cited many of these factors in the collapse of its pub division, saying in a statement: “It has been an extremely challenging trading environment over the last couple of years, including the pandemic, increased loan burdens on the back of this, ongoing recruitment challenges, soaring interest rates, supplier cost increases, cost of living crisis resulting in reduced trade and huge increases in the cost base with uncapped energy contracts.”

“In spite of these challenges we had a plan in place to continue to steer through this however the business has HMRC arrears predominantly from the pandemic, like many in the industry, the HMRC had been working with us however this recently changed and the debt was demanded to be paid back within a short period, which meant the we could no longer continue to trade.”

The company said that its two freehold sites, The Greyhound, Friar Gate & Derby Brewing Tap House, Derwent Street, would be sold by administrators in order “to clear the arrears to meet their timeframe.” Both will remain open during the marketing process.

Three other sites, however, The Clubhouse, Derby, The Pig Lichfield & The Pointing Dogs, Matlock, will close with immediate effect. The administration will not affect the brewery, while the Hole in the Wall pub in Mickleover and NOTSA in Aston on Trent will continue to be operated by Derby Brewing under a new company.

Derby Brewing Company MD Paul Harris commented: “It is with huge regret that we have been unable to steer the business through this extremely challenging period. We have unfortunately joined a growing list of operators to close previously successful businesses.”

“The final nail in the coffin was a combination of the government allowing energy contracts five-fold previous levels to remain in place once their 50 per cent support was removed and the in our view unreasonable behaviour of the HMRC.”


Find out more about the headwinds facing UK craft breweries

Read about M&A trends in the UK hospitality sector

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