Award-winning Gold Coast Black Hops Brewery in voluntary administration over ATO debt

An award-winning Gold Coast brewing company is in voluntary administration with its business to be sold after mounting tax debts left it unable to continue. Read what happened

Black Hops Brewing wrote to investors late on Thursday saying Deloitte had been appointed.

An award-winning Gold Coast brewing company is in voluntary administration with its business to be sold after mounting tax debts left it unable to continue.

Black Hops Brewing wrote to investors late on Thursday saying Deloitte had been appointed to the company after a “tough decision”.

“This decision has not been easy to make, however, the path the ATO has taken with the business has left the company in a position where there was no alternative,” the company said.

Black Hops was founded by mates Dan Norris, Eddie Oldfield and brewer Michael “Govs” McGovern in 2015 after an unexpectedly successful experiment with Eggnog Stout.

Black Hops founders Eddie Oldfield, Michael McGovern and Dan Norris. Picture: Kit Wise

By 2016, they had found a 250sq m building on Gardenia Grove, Burleigh Heads, took over the buildings next door and behind, and expanded to a 600sq m brewhouse.

Two years later they expanded to a super-sized brewery and tap house in Biggera Waters after crowd funding $400,000 in six days from 545 investors.

A third tap room at East Brisbane followed soon after.

Between the breweries, Black Hops brews more than a million litres of craft beer a year, is stocked in bottle shops and bars nationwide and employs up to 70 staff. Mr Norris has since left the company.

Director Tony Sutherland said he could not comment specifically on what had happened, except to say it was “an absolute tragedy”.

“It’s terrible,” he said.

“Something that was being turned around after all the Covid rubbish and what the governments around the country did to small and medium businesses.

“Just when things are turning around, we’ve got bureaucracies like the ATO come and take it away – it’s a tragedy.”

Dan Norris, Eddie Oldfield and Michael McGovern in better days. Picture: Richard Gosling

The ATO have been cracking down on unpaid business tax, increasing its court actions to record levels after effectively encouraging businesses to defer their liabilities during the pandemic.

In its letter to investors, Black Hops said beer would still be made and sold, and tap rooms would stay open and serving food during the administration.

“So please get around us at this point in time and support our taprooms and retail sales, we are thankful for you being a part of our continued journey,” the note said.

The company plans to propose a Deed of Company Arrangement (DoCA) to creditors in an effort to save it from liquidation.

Black Hops Brewery has two tap rooms.

“Further to this, Deloitte will run a sale process of Black Hops, so you may see an advert for a sale of the business,” the note said.

“We form the view that a DoCA, if successful, will put the company in a better position and allow the management team to proceed with putting Black Hops into an ongoing profitable position.

“Further, this restructure will allow all shareholders to still be involved with the company and retain equity.”

David Mansfield and Tim Heenan of Deloitte are the appointed administrators.

Mr Mansfield said the administrators were taking over management of the business and reviewing its financial position.

“For now, brewing and taphouse operations will continue to trade while we explore urgent sale options,” he said.

“The East Brisbane taphouse will be closed over the Easter break.”

Originally published as Award-winning Gold Coast Black Hops Brewery in voluntary administration over ATO debt