Black Sheep, the North Yorkshire brewery and pub operator has appointed financial adviser Teneo to conduct a business review, including the possible sale of the company.

Black Sheep said it is currently experiencing good sales volumes of its beers but is seeing a “significant constraint on funding in light of the prevailing economic conditions”.

The company said it is considering all options, including a merger or an acquisition of the company.

It is not currently in talks with any potential offer and has not had an approach.

The company said it has plans to further develop its core beers and new products to build on its brand in Yorkshire, the North and nationally.

Chair and chief executive Charlene Lyons said: “We are pleased to have seen so many customers enjoying Black Sheep beers over the Easter bank holiday weekend, one of our busiest trading periods of the year.

“However, we believe that now is the right time to conduct this strategic review to secure the best outcome for our valued shareholders and other stakeholders.

“The brewery has exciting and ambitious plans for the future and interesting projects in the pipeline. Forward funding is an issue for many businesses in the tight market brought about by the after-effects of Covid-19 on the hospitality sector and this is exacerbated by the cost-of-living issues affecting consumer spending.

“We are confident that the wider investment market will see the opportunities presented by this well-established and highly regarded brand.”