THE fate of Billson’s Beverages may be decided in the next month as administrators remain optimistic of its sale and recapitalisation prospects.
Indicative offers for the Beechworth-based business close on Friday, September 13, around five weeks after entering the sale process.
McGrath Nicol administrator Rob Smith said offers were progressing well and as planned, with more than 40 Australian and overseas companies showing interest for the business.
“It gives us continued optimism about a successful outcome of the sale and recapitalisation process,” he said.
“It’s a positive number and it goes to Billson’s being a really successful brand of business in the past and continuing to be so.
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“It’s garnered a wide variety of interest which is encouraging."
Following the closure of indicative offers, Mr Smith said the group would be asking preferred bidders to move into detailed due diligence and expecting final offers to be made by mid-October.
“We’re looking to enter a final sale agreement by the end of October,” he said.
The popular Beechworth brewery entered voluntary administration on July 31, citing a rapid downturn in consumer spending, and punishing government excise duties as contributing factors.
Supreme Court of Victoria documents submitted on September 5 show at the time the administrators were appointed, the company owed at least $22 million in debts and liabilities to creditors.
Of that amount, more than $12.2 million was owed to the NAB with $1.8 million in tax, $1.1 million in employee entitlements and $3.3 million to other creditors.
Following the administrators' July 31 appointment, 53 employees were laid off with 49 workers remaining.
The company had previously slashed jobs in February amid cost pressures.
Associate Justice Simon Gardiner said should a sale not be achievable, it was likely the administrators would have to cease operations and wind down the business to realise any remaining assets.
"The administrators contend however, the sale is ultimately structured to maximise the sale proceeds and provide the best opportunity for the secured creditors to be paid out, with any surplus funds to be made available to unsecured creditors," he said.
"They consider that maintaining business operations is important while a sale remains a reasonable possibility, as it ensures that a going concern sale is feasible."
Mr Smith said the business has remained open and trading and will continue to be open throughout the sale process.
“The business is trading well and we’re preparing for a really big spring and summer,” he said.
“The business is making preparations for a big September school holidays in Beechworth and we’re expecting a busy few weeks and we’re launching new products.
“We understand and know the business is a significant part of the Beechworth and North East community and a key tourist attraction for the area.
“It bodes well for a successful outcome for the business, the community and the North East region.”
In an update posted to Facebook last week, previous Billson’s owners Nathan and Felicity Cowan thanked the local and wider community for their support following their voluntary administration announcement.
“Whilst the last five weeks have been difficult and disruptive, we want to thank all of our wonderful customers, retail partners and suppliers for sticking by us,” they said.
“We’re feeling very optimistic and hope to have some exciting news to share with you in the not too distant future.”
