Brett Lee's Sydney Beer Co saved from liquidation after creditors accept lifeline following months in administration

Sky News AU

5 hours ago

Former Australian fast bowler Brett Lee's collapsed beer company has been thrown a lifeline after creditors backed a rescue deal.
Sydney Beer Co collapsed in March this year after failing to successfully trade, according to documents filed to the Australian Securities and Investments Commission.
Being founded in 2016, the lager was distributed to 350 venues nationwide and sold in independent bottle stores, Dan Murphy's and BWS.
Lee, who claimed 310 wickets in 76 Test matches, was listed as a co-owner in 2022 along with Australian actor and writer Matt Nable.
New documents revealed administrators put total liabilities of the business at an estimated $8.5m, threatening the business into liquidation.
Sydney Beer Co's administrators, Brett Lord and Richard Stone of RSM Australia, said the company could not continue due to a negative cashflow.
All 11 staff members were sacked as $1.1m was owed to the tax office, $6.2m in loans to the company's parent company SBCO Op and $642,540 owed to 47 trade creditors.
Employees were listed as being owed over $460,000 including $226,222 in wages, $134,028 in superannuation and $46,348 in annual leave.
The company aspired to expand into the United States from a $6m capital raise, despite figures showing trading losses for four years prior to going into administration.
Financial records showed gross profit spiralling from $474,045 in FY2021 to $123,781 March 2025.
Mr Lord told The Daily Telegraph the company sought further capital investment to continue trading but was unsuccessful.
'With funding from SBCO Op the company implemented a revenue growth drive during FY23 and onward,' he said.
'Whilst revenues increased from this date forward, increases were insufficient to meet the additional costs of sales and operating expenses to achieve those revenues.'
SBCO Op submitted a lifeline deal to creditors where employees got paid out in full and unsecured creditors received between 21c to 100c on the dollar.
Administrators suggested the creditors to take the deal, or else unsecured creditors would likely get back 0c to 5c on the dollar if Sydney Beer Co was tipped into liquidation.
The money paid to creditors will come from an estimated $1.1m of company assets and a cash lump sum paid by SBCO Op of a minimum of $1m, upwards of $1.5m.
Control of Sydney Beer Co has been returned to the directors.
Their website has since been taken down and the product can't be purchased from retailers.