Tuesday 30th January 2018
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Christchurch-based liquor distributor Brandhouse has bought Renaissance Brewing for an undisclosed sum, beating three other offers on the table.
Renaissance was put up for sale by voluntary administrators Iain Shephard and Jessica Kellow of Shephard Dunphy last October after the boutique beer brewer was caught short by cash flow problems while juggling too many products. It attracted 10 parties to undertake due diligence. Shephard today said Sahara New Zealand, trading as Brandhouse, has signed an unconditional contract, trumping three other offers, with the deal set to settle on Feb. 19.
"Administrators were appointed on 9 October 2017 and have continued to trade the business whilst a sale process was negotiated. This trading period was only possible with the support of the employees, the director and the local Marlborough businesses," Shephard said. "It is the intention of Brandhouse that Renaissance continues to brew great beer from its base in Blenheim and that the distribution across New Zealand is widened."
Brandhouse supplies liquor and wine to the hospitality industry and has exclusive distribution of Croizet Cognac. The company is owned by members of the Dellaca family, which founded clothing retailer Postie Plus.
Renaissance was the first company to raise money under the country's equity crowdfunding regime, securing its $700,000 target in just a week and a half. Since then, craft beer has grown at a faster pace than regular beer brewers, prompting the big liquor companies to buy some of their boutique rivals.
The administrators successfully sought an extension to a watershed meeting of Renaissance's 88 creditors, saying they wouldn't be able to make a recommendation with sale negotiations were at an early stage.
That meeting was held today in Blenheim, and creditors resolved to place Renaissance into liquidation, with Shephard and Kellow appointed liquidators.
"The sale of the business will not enable a distribution to unsecured creditors," they said.
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