Goulburn's Tribe Breweries goes into voluntary administration

In a statement, CEO Amarto Basu said the company's financial structure and debts could not support the business in a "challenging trading environment."

On Tuesday, the directors appointed Christopher Hill and Joseph Hansell of FTI Consulting as voluntary administrators to Tribe Breweries and six associated entities, including Brewpack Pty Ltd and Macarthur Grange Brewery Pty Ltd.

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Mr Basu did not anticipate any impact on day-to-day operations as a result of the administration.

"This has been a difficult decision, but one that we hope will help put Tribe onto a sustainable footing for the future," he said.

"Our priority is to our team, our customers and suppliers and to provide them with maximum support through this period.

"We have made great achievements since our inception in 2018. Tribe is home to the largest number of independent craft beers brewed in Australia

"The Board has taken the view that the company's financial structure and debts cannot support the business at a time of challenging trading conditions.

"After exploring a range of options, the directors believe this step will provide the best opportunity to protect the future of the business and the interests of employees and stakeholders."

The administrators would not be drawn at this stage on further details, including the impact on employees.

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The Goulburn brewery started operations in 2019. Former CEO Anton Szpitalak said Goulburn offered a large and affordable space in Ducks Lane and the company subsequently wound down its Smeaton Grange operation.

The $45 million facility had a 30 million litre capacity but owners anticipated an eventual 70 million litres.

The company touted it as "the largest and most sophisticated state-of-the-art craft beverage production facility of its kind in Australia." Output was reported to be expanding.

The craft brewing operation employs employs some 60 people in Goulburn.

In 2018, Goulburn Mulwaree Council granted it a special industrial water rate, given its usage, provided it reached local employment targets. These have been exceeded.

Now, administrators will assume responsibility for day to day operations. FTI said it would work with management and "key stakeholders" to determine options for a company restructure.

"We will conduct an independent assessment of the financial position of Tribe and seek to make a recommendation for the future of Tribe that is in the best interest of the creditors and stakeholders," Mr Hill said.

The scale of debts is not known at this stage. The first meeting of creditors will take place on March 9.

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