A beloved craft brewery has entered voluntary administration following the collapse of its financial backer.
Tasmania'sFox Friday Craft Brewery announced on Wednesday with 'heavy hearts' that McGrathNicol had been appointed as the administrator.
The company started as anano-brewery in the Hobart suburb of Moonah six years ago but has since grown to open venues across the city as well as Melbourne and Perth.
The brewery will continue to operate for now.
'It's with heavy hearts that we share some tough news. Sarah and I have made the difficult decision to place Fox Friday and subsidiaries into voluntary administration,' owner Benn Hooper wrote online.
'When we purchased Fox Friday in March 2019, it was just the two of us in a small factory unit located in Moonah, brewing beer during the week and running a makeshift taproom on the weekends.
'In late 2020, we opened our Hobart Taproom, and from there, our team grew. We added new venues and breweries, and welcomed incredibly dedicated people to the Fox Friday family.'
Mr Hooper added he and his team were 'immensely proud of' the company they'd created.
Tasmania's Fox Friday Craft Brewery will remain open, despite entering voluntary administration (stock image)
Fox Fridaystarted as a nano-brewery in Moonah, Hobart, six years ago but has since grown to open venues across the city as well as Melbourne and Perth
'Unfortunately, we've faced significant financial challenges that have brought us to this point,' he wrote.
'Our financial lender could not meet their obligations for our capital projects.'
Fox Friday's financial backer,Falcon Capital, is currentlyunder investigation by the Australian Securities and Investments Commission, The Australian reported.
It had provided the brewer a $10million loan facility, which was later upped to $30million.
'While funding was confirmed, we experienced continual delays extending to March 2025, and now they have been placed into liquidation,' Mr Hooper continued.
'This left us covering major capital projects with operational funds, based on assurances that support was still coming.'
Mr Hooper also issued an apology to Fox Friday's suppliers, writing the company'deeply regret any uncertainty' news of the administration brings.
'We tried everything we could to quickly pivot to new lenders and/or equity partners, but quite simply, time and the complex nature of the situation were not on our side,' he wrote.
Fox Friday said it was 'committed to keeping it business as usual'but warned changes to its operating days and hours could be on the way
'To our incredible team: words can't express how sorry we are. You've poured your hearts into these businesses, and we're so grateful for your talent, passion, and dedication.
'To our customers and community: thank you for believing in us, for sharing a beer with us, and for being part of this journey.'
The owners said they were 'committed to keeping it business as usual' at the brewery but warned changes to trading hours could be on the way.
'While we understand that there will be some uncertainty as a result of this decision, we very much intend to come through the other side of this and we hope that Fox Friday and its subsidiaries will continue to operate well into the future,' they wrote.
The latest news comes days after cost of living challenges and increased costs claimed a beloved bar and brewery.
The craft brewery entered voluntary administration following the collapse of its financial backer
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