Mighty Craft Limited (MCL) – which specialises in craft beers and spirits – has been placed in administration after a proposed merger with Better Beer Holdings collapsed.
The company owned the popular Lot 100 venue in the Adelaide Hills, but announced its sale two weeks ago to a group of publicans for $1.5 million.
Mighty Craft also recently sold off 78 Degrees spirits and Mismatch Brewing.
In 2021 Mighty Craft paid $47 million for Adelaide Hills Distillery, Mismatch Brewing, Hills Cider and a 75 percent stake in the 84-hectare property Lot 100.
“The company has been undergoing a divestment and restructuring program to reduce the company’s debt,” Mighty Craft says in an ASX announcement.
“Fundamental to this program was a proposed merger between Better Beer Holdings Pty Ltd (Better Beer) and MCL, an arrangement that required the support of MCL’s senior lenders and the shareholders of Better Beer.
“A capital raise to support this process was also contemplated.
“It now appears unlikely that an agreement will be reached between MCL’s senior lenders, Better Beer and Mighty Craft that is acceptable to all parties.
“The directors therefore formed the opinion that the company should be placed into voluntary administration to evaluate options for the company to continue as a going concern, or if this is not possible, that an administration will result in a better return for the creditors and members of the company than would otherwise result from an immediate winding up of the company.”
Company venues include Kangaroo Island Spirits Cellar Door, The Valley Brewhouse and Brogan’s Way Cellar Door.
The administrators – Ankura – have assumed control of the company’s business and assets and will be undertaking an urgent assessment of the company, working closely with management and the board during the administration period to determine the appropriate way forward to maximise the outcome for all stakeholders of the company.
“In the meantime, the administrators have confirmed that the operations of the company and its subsidiaries will continue on a business-as-usual basis.”
Lot 100 – which houses the brands Hills Cider Co, Mismatch Brewing, Vinteloper wines, Adelaide Hills Distillery, Ashton Valley Fresh and a restaurant – last year hosted the annual Adelaide Hills Wine show lunch.
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