Major mining fleet provider Northfleet’s former and current bosses have struck a deal to save troubled South Fremantle brewery Running With Thieves from administration.
Trucking and logistics company Northfleet’s long-serving managing director now non-executive director Michael Simm alongside current boss Toby Hagen and associate Mathew Cruden have emerged as the bidders behind a successful deed of company arrangement.
But not only have the mining services players been successful in passing a restructuring bid for the under administration brewery, but they are aspiring to expand the Fremantle-born brand nationally in 2024.
It comes after administrators were voluntarily appointed to take control of the South Fremantle brewery, distillery and restaurant three months ago to sort through its alleged $9 million worth of debt to creditors.
In a meeting last week, the pub’s creditors voted to accept the DOCA proposed by an entity named Run With Us Pty Ltd, being mining services executive Mr Simm and his two business partners.
Northfleet claims to have worked with nearly all of the country’s large mining companies such as Fortescue Metals Group, Rio Tinto and Roy Hill.
The company offers mine-spec transport and logistic options from its depots in Karratha, Port Hedland, Newman, Perth and the South West.
Mr Simm led Northfleet for 13 years before stepping back in 2018 to become a non-executive director, making way for current managing director Mr Hagen.
A Run With Us spokesperson told Business News they were assessing expansion plans for next year.
“The company is well positioned for the busy summer period and looks forward to welcoming its patrons, as the brand sets its sights on national expansion and more in 2024,” the spokesperson said.
The restructuring deal proposes to continue operating Running With Thieves, under its original name, and retain 60 staff representing 98 per cent of the company’s employees.
The entity will make a contribution of $1.1 million under the DOCA, which was subject to conditions such as the resignation or removal of Running With Thieves co-founder Scott Douglas as director and secretary of the company.
Hall Chadwick administrators Richard Albarran, Cameron Shaw, and Aaron Dominish said they were pleased to announced the DOCA proposed by Run With Us was accepted at the meeting on November 9.
“We are grateful for the support of the company’s suppliers, dedicated team, and loyal patrons throughout the period of administration, which allowed continuing operations on a business-as-usual basis,” a deed administration spokesman said.
In August, administrators were appointed to Atari Enterprises Trading Company- trading as Running With Thieves.
The decision was made off the back of difficult trading conditions, trading losses and being over leveraged, according to reports.
A month later, administrators recommended the brewhouse be liquidated as the establishment was believed to owe $4.5 million in shareholder loans and $3.5 million to the tax office, Business News revealed at the time.
The Marine Terrace-located business had reportedly traded at a loss since 2018, culminating in a loss of $7.8 million between July 2018 and June 2023.
But then the administrators confirmed a third-party had revealed their intention to submit a DOCA.
The pub and brand was launched in the midst of the pandemic in 2020 by co-founder Mr Douglas with Brooklyn Whelan and Pablo Frenkel.