By Jack Mendel
152-year-old Suffolk brewer Adnams could be the latest victim of inflation and rising costs, as it calls in advisers to help save the firm from going down.
Historic premium bottled ale firm Adnams confirmed this week that it has asked advisors “to explore a range of options to fund the Company’s future growth plans.”
The advisors being used are Alvarez & Marsal.
This comes after the firm detailed its struggles in September, citing the heavy toll of both the pandemic and high inflation on the industry.
In a statement on Monday, Adnams said: “Following media speculation, the Board of Directors of Adnams plc wishes to clarify that the Company has instructed advisors to explore a range of options to fund the Company’s future growth plans.”
“As a business of more than 150 years, and ever mindful of the challenges faced by the hospitality and brewing industries in recent times, the Company is continually proactive in seeking ways to ensure that the business is even more resilient for the years to come.”
In September, Adnams reported its operating losses increased to £2.4m as it said it “cannot commit to paying an interim dividend” at the time.
It warned that its “pubs and hotels continue to be in the eye of the storm” with rural watering holes particularly affected.
The firm said its poor half-year results came against the backdrop of soaring inflation and high interest rates which “led to sales across the sector remaining almost 15 per cent below pre-pandemic levels, while around 35 per cent were spending less on going out. It also cited the number of UK pubs closing by 15 per cent from a decade earlier.
Adnams, UK Hospitality and Alvarez & Marsal have been approached for comment.
