A Lifeline for the 159-Year-Old Brewery
Billson’s Beverages, the beloved Australian drinks brand, has narrowly escaped liquidation after a critical creditors’ vote today.
The company, which has been brewing beer and other drinks in its historic 159-year-old brewery in Beechworth, Victoria, since 1865, was on the brink of collapse. But in a dramatic turn of events, the company has been given a new lease on life.
The Road to Administration
In July, Billson’s Beverages went into administration, leaving its future uncertain. A report by administrators McGrath Nicol last week outlined three possible options: ending the administration, a deed of company arrangement, or liquidation. Fortunately, the second option was chosen, offering the best return for creditors.
A New Chapter for Billson’s
In a statement on social media, owners Nathan and Felicity Cowan expressed their relief and gratitude, saying, “This morning, our proposal to restructure and recapitalize the business was approved by our creditors. This marks a pivotal milestone for us of which we are truly grateful.” The Cowans, who bought the business seven years ago, can now focus on what they love most – the Beechworth venue experience, their range of traditional flavors, and the site’s pristine alpine spring water.
A Boost for the Local Community
The news has been welcomed by the local business community, with Beechworth Inc president Katerina Witherow saying, “Billson’s is a big player in our town, and we’re thrilled that the company will continue to operate.” The decision also means that the company’s employees can breathe a sigh of relief, as their jobs have been safeguarded.
The Rise and Fall of Billson’s
The administrator’s report revealed the company’s remarkable growth story. From $400,000 in revenue in 2018 to $105 million in 2023, Billson’s Beverages rose to fame quickly. However, things took a turn for the worse in 2023, with sales declining due to over-stocking, intense competition, and high prices. Production quality issues in August 2023 also led to inventory destruction costs.
What’s Next for Billson’s?
Under the restructuring plan, the company will return more than $12 million to National Australia Bank, one of its secured creditors. Employee entitlements are about $400,000, while unsecured creditors can expect to receive less than 10 cents for every dollar owed. The report also revealed that administrators have been negotiating with a confidential party to sell off the alcoholic component of the business, likely to be completed in January.
A Fresh Start for Billson’s
While the company still has a long way to go, this new chapter marks a fresh start for Billson’s Beverages. With a restructured business plan, the company can focus on rebuilding and growing once again. As Katerina Witherow said, “I hope they’ve learnt a lot of lessons along the way, as we all do when we’re in business. This is their chance to hopefully have another go at it.”