Billson’s products, including its pre-mixed cans, are carried by major retailers across the country. (ABC News: Jason Katsaras)
In short:
Pilsner Brewery will continue to operate after creditors voted not to liquidate the company.
The company entered bankruptcy proceedings earlier this year.
What’s next?
The company said staff will continue to work and expects a busy summer.
Iconic drinks brand Billson’s Beverages Pty Ltd, also known as Billson’s Brewery, was given a lifeline today and avoided bankruptcy as creditors voted on the company’s future.
The company, based in a 159-year-old brewery in Beechworth in northeast Victoria, went into administration in July.
A report released last week by creditor McGrath Nicol outlined three options for the company – ending administration, a corporate arrangement or liquidation.
The administrator recommends the second option because it provides the best return for creditors.
Company owners Nathan and Felicity Cowan outside the historic brewery. (Image: Facebook)
Owners Nathan and Felicity Cowan said in a statement on social media that they were “delighted” to secure the future of the company and brewery.
“This morning, our proposal to restructure and recapitalize our business was approved by our creditors. This is a key milestone for us and one we are deeply grateful for,” the statement read.
“The reorganisation will allow us to refocus on the things we love most: the Beechworth experience, our wide range of traditional flavours and the venue’s pristine alpine spring water.
“Importantly, this plan protects the jobs of all of our fantastic, resilient team members and provides opportunities for new/rehired employees to help us navigate a busy summer.”
Business community welcomes news
Katerina Witherow, president of business advocacy group Beechworth Inc, said the company was a “significant player” in the town and welcomed the news it would remain open.
She said she was pleased to hear that the company’s employees would stay.
Billson’s current owners bought the Beechworth-based business seven years ago. (Source: Billson’s Brewery)
She said: “After the epidemic, the operation of enterprises is facing difficulties.
“Especially during this period, the situation is very tough right now and there are a lot of empty shops in the city.
“I also hope that they learn a lot of lessons along the way, just like we do in business.
“Hopefully this is their chance to try again.”
Ms Witherow said the brewery building was an important part of Beechworth’s history and heritage and it was “very important that someone had control and use it”.
“They really put their heart and soul into it,” she said.
“I hope things get better for Billson and I hope they have a vision moving forward,” she said.
We have contacted the company’s owners and administrators for further comment.
Find more local news
Browse your location and find more local ABC news and information
Billson’s rise and fall
The administrators’ report reveals the company’s remarkable rise and fall.
The company was founded in 2017 by Mr Cowan, a “tree changer” from Melbourne, who acquired the historic brewery, which had not produced beer or alcoholic beverages since the 1920s”.
The company’s revenue has grown “substantially,” from $400,000 in fiscal 2018 to $105 million in fiscal 2023, the report said.
The company continued to pursue a “clear revenue growth strategy” by investing heavily in sales, marketing, product development and administrative expenses, and building inventory to meet sales targets, the report said.
Billson’s alcoholic beverages range could be sold under restructuring plan. (ABC Goulburn Murray: Jason Katsaras)
But things then changed.
The report said the decline in sales from November 2023 was “primarily due to excess inventory at key customers, intense competition from new entrants and Billson’s Beverages’ relatively high prices in a market under cost of living pressure”.
The company also reportedly experienced production quality issues in August 2023, resulting in inventory destruction costs.
When the company entered bankruptcy proceedings, it had 101 employees, more than half of whom were laid off.
Under the restructuring plan voted on today, the company expects to return more than $12 million to one of its secured creditors, National Australia Bank (NAB.
Employee benefits are approximately $400,000.
The company owes more than $7 million to 142 unsecured creditors, who are expected to receive less than 10 cents on the dollar.
The report said administrators had been in talks with “unrelated confidential parties” since October last year over a possible sale of the alcohol arm of the business.
The work is likely to be completed in January.
A significant portion of the proceeds will be used to finance the deed of corporate arrangement.
Find more local news
Browse your location and find more local ABC news and information