LAST ORDERS
Popular brewery files for administration leaving drinkers gutted
Scroll down to find out why breweries and pubs are struggling
A POPULAR brewery has filed for administration with customers and locals left gutted.
Carnival Brewing Company has appointed administrators Begbies Traynor after struggling to find a buyer for the business.
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The Liverpool-based micro brewery first opened in 2017 and also had an on-site taproom serving a range of beers on weekends.
It often worked with musicians and record labels to produce limited edition craft beers.
But administrators will now hold an auction later this month to sell off the business's assets.
Paul Stanley, partner at Begbie Traynor, said: "Many small, independent businesses are facing difficulties at the moment and despite establishing a number of trade and individual customers in a competitive industry Carnival has been unable to find a buyer and has been placed into administration.
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“We are working closely with creditors and directors to support on next steps."
Punters have been left devastated after finding out the brewery has stopped production for good.
"Very sad, lovely people and brewery. Will be missed," one said.
Another commented: "Oh that's a shame. We've had a few of their beers on at the pub and always thought they were really decent."
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Meanwhile, a third added: "Shame Carnival Brewing Company is gone. Cool place it was."
In its most recent accounts filed to Companies House for the year ending September 20, 2023, Carnival said it had net current liabilities of around £285,000, up from £235,000 the previous year.
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Current liabilities are a company's short-term debts, or bills that need to be paid within a year.
The brewing company also owed over £346,000 to creditors, up from £291,000 the year before.
BREWERIES AND PUBS STRUGGLE
Breweries and pubs across the UK have struggled in recent years as the high cost of living sees customers' budgets take a dent.
The increased cost of brewing and beer prices, as well as rising energy bills have also had an impact.
Recent figures analysed and published by the Altus Group revealed over 400 pubs across England and Wales were demolished or converted for other uses in the year to December.
This saw the number of pubs across the two countries dip below 39,000 for the first time.
More than 34 pubs a month called last orders for the final time over the year - the sharpest fall in pub numbers since 2021 during the coronavirus pandemic.
UK pub numbers have now plunged by more than 2,000 since the start of 2020.
A number of breweries are facing trouble too, including the Fourpure brewing company which appointed administrators in October and the Magic Rock Brewery which said it would bring administrators in last month.
Meanwhile, Carlsberg Marston's Brewing Company (CMBC) said in November it would stop making eight classic British cask beers following a review.
A number of pubs are also warning they will have to hike prices for customers this year after the Government's Autumn Budget.
Employer National Insurance Contributions (NICs) and the national minimum wage are both rising from April.
But businesses have cautioned this will force them into upping the price of drinks as they try and absorb the extra costs.
Simon Dodd, chief executive of Young's, said the chain plans to hike its prices by between 2.5% and 3%.
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Wetherspoons also recently hiked the price of some of its drinks and meal deals by up to 30p after a warning from boss Tim Martin.
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By Laura McGuire, consumer reporter.
MANY Food and drink chains have been struggling in recently as the cost of living has led to fewer people spending on eating out.
Businesses had been struggling to bounce back after the pandemic, only to be hit with soaring energy bills and inflation.
Multiple chains have been affected, resulting in big-name brands like Wetherspoons and Frankie & Benny's closing branches.
Some chains have not survived, Byron Burger fell into administration last year, with owners saying it would result in the loss of over 200 jobs.
Pizza giant, Papa Johns is shutting down 43 of its stores soon.
Tasty, the owner of Wildwood, said it will shut sites as part of major restructuring plans.
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