Redwell Brewery bosses defiant despite parent company liquidation
PUBLISHED: 06:00 01 January 2020 | UPDATED: 16:29 01 January 2020
The bosses of a well-known Norwich brewery were today defiant about its future after its parent company went into liquidation.
Directors are to liquidate Three Arches, the parent company for Redwell Brewing, based at 7, The Arches, Bracondale. Former company director John Hughes blamed a 'cashflow void left by a large unfulfilled supermarket order'. He also stated a recent council decision that reduced their on-site taproom bar opening hours had been a contributory factor.
However, the message to customers from Mr Hughes, who has shares in Unicorn Craft Brewing Company Ltd which owns Three Arches and Redwell, is that he and his brother Paul hope to continue the Redwell brand going forward and for customers, it's business as normal, with the taproom open as usual.
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The craft beer maker, renowned for its colourful cans of pilsners and extra pale ales with equally imaginative names like 'unicorn tears,' encountered some challenges in 2019. It recently saw its taproom almost shut down by Norwich City Council over an issue to do with planning permission. In November, councillors agreed it could stay open but at reduced times.
Then, also in November saw Patrick Fisher, a former director of Redwell and who helped originally set it up back in 2013, but with no current connection, jailed for fraud.
Back in December 2017 Redwell ran into financial difficulties and went into administration but was bought out by a team of local investors. In 2018 the Future50 firm appointed a new MD, Ben Hopkins and doing deals with Aldi and Tesco, the firm seemed to be thriving. But yesterday Mr Hughes issued a statement, saying: "Three Arches is being placed into liquidation by the directors due to a cashflow void left by a large supermarket order that was unfulfilled. This was combined with the local planning decision to reduce the taproom hours. Due to the position the business found itself in, the 11 shareholders were left with little choice but to liquidate the business.
"Myself and brother Paul purchased the holding company (Unicorn Craft Brewing) and plan to retain brewing, taproom and sales staff and want to build on the core strengths that Redwell has in producing and distributing award-winning beer to local pubs and small retail outlets, as well as focusing on some other interesting new directions. The message to customers is that it's very much business as usual, including taproom opening."
Whereas the process of administration aims to rescue a company by restructuring or otherwise returning it to profitability, so avoiding insolvency, liquidation aims to wind up a company by realising its assets so that creditors/shareholders can be repaid.