Adnams has confirmed its engagement of advisers to explore avenues for raising funds as the Suffolk-based brewery seeks to safeguard its financial stability.
The longstanding company, with a history spanning 152 years and headquartered in Southwold, Suffolk, has enlisted Alvarez & Marsal to “evaluate various options to support the company’s future growth strategies.”
In a statement released on Monday, the company stated: “With a heritage of over 150 years and cognizant of the challenges confronting the hospitality and brewing sectors in recent times, the company remains committed to proactively seeking ways to ensure its enduring resilience for the years ahead.”
Following this announcement, shares in Adnams experienced a decline of nearly 5%.
Potential options may encompass securing private capital from high net worth individuals or family offices, alongside the potential divestment of certain freehold assets from its portfolio of 45 managed inns and properties.
In its September report, the company disclosed widened operating losses of £2.4m for the first half of the year ending in June, compared to an £811,000 loss during the corresponding period in 2022, with revenues remaining stagnant at £30m.
The founding family remains the brewery’s principal shareholder, as Adnams has diversified into gin, beer, and tourism offerings, including tours of the Southwold lighthouse.
The hospitality industry continues to grapple with post-pandemic recovery challenges. Last year, Yorkshire-based Black Sheep was acquired out of administration by investment firm Breal for approximately £5m.
Subsequently, Breal has acquired several struggling enterprises, including Warwickshire’s Purity Brewing Company, the proprietor of Session IPA, along with south London’s Brick Brewery and Brew by Numbers.
Leeds-based North Brewing Co faced administration last month but was rescued by Steve Holt, director of fellow Leeds brewery Kirkstall Brewery.
Adnams’ board features notable figures such as Steven Sharp, former executive director at Marks & Spencer, and Simon Townsend, former chief executive of the pub operator Ei Group. Other members include Andy Wood, Jenny Hanlon, and Karen Hester.
While formally established in 1890, Adnams traces its origins back to 1872 when George and Ernest Adnams acquired the Sole Bay Brewery in Southwold.