The administrators for troubled brewery Running With Thieves have insisted it's “business as usual” ahead of assessing a restructuring proposal for the South Fremantle business.
The administrators for troubled brewery Running With Thieves have insisted it's “business as usual” ahead of assessing a restructuring proposal for the South Fremantle business.
The team behind the Fremantle brewery, distillery and restaurant have reportedly been “working hard behind the scenes” to increase stock levels as summer approaches after voluntarily appointing administrators in August.
On Tuesday, Hall Chadwick administrators for Running With Thieves, registered as Atari Enterprises Trading Company, confirmed they have received a Deed of Company Arrangement proposal.
It comes after the administrators told creditors last month that a third party had advised their intention to submit a DOCA proposal, according to the minutes lodged with ASIC.
The draft DOCA provided for the business to continue to trade, its staff to continue their employment and secured creditors to continue to be engaged by the company, according to the minutes from the first creditors meeting.
The draft restructuring bid, which may have since changed, also provided for an upfront contribution which may enable a return to unsecured creditors.
It comes after Business News revealed that the brewhouse is believed to owe $9.3 million to creditors with administrators initially recommending the company be wound up and placed in liquidation.
But the liquidation recommendation has been pushed back after the DOCA was received from a third party promoting the second creditors meeting to be adjourned to assess the proposal.
The administrators said they would continue negotiations regarding “any DOCA proposals” and then prepare a supplementary report to creditors providing further details on the estimated outcome.
“The administrators are continuing to work alongside the director of the company and its existing senior management team to ensure the ongoing trading operations continue as ‘business as usual’,” Hall Chadwick said in a statement.
“With warmer weather approaching, the company’s team has worked hard behind the scenes to increase stock levels and the Administrators welcome the continued patronage of the community.”
The business reportedly owes $4.5 million in shareholder loans and $3.5 million to the tax office, according to the administrators report to creditors.
Of the $3.5 million owed to the government, Running With Thieves owes $2.3 million in excise duty, otherwise known as alcohol tax.
The business has reportedly traded at a loss since 2018, culminating in a loss of $7.8 million between July 2018 and June 2023.
The Marine Terrace-headquartered company owns a maximum of $571,000 in total assets, including $46,000 in cash at bank.
Preliminary investigations attributed the company’s situation to poor economic conditions, trading losses and being over leveraged.
Hall Chadwick administrators Richard Albarran, Cameron Shaw, and Aaron Dominish were voluntarily appointed to the brewery on August 24.
At the time, administrators said they had been advised of “stakeholders’ intention to propose a DOCA” ahead of the first creditors meeting.
