Black Sheep brewery has said it intends to appoint administrators after failing to attract new investment.

The North Yorkshire brewery, which employs about 50 people, said in April it was undertaking a review to look at funding options, including a potential sale or merger.

The Masham-based company said it had been “hit very hard” by the pandemic and rising costs.

The board said the decision to appoint Teneo Financial Advisory would protect the interests of its creditors.

Chief executive Charlene Lyons said the company had done its “utmost to deliver new investment” but it had not been possible.

“We are progressing with our discussions around a sale of the business,” she said.

In a statement the directors said: “Black Sheep brewery has great products, a compelling brand and is supported by a dedicated team of people which is capable of delivering great results for the business in a different structure.

“We are focused on achieving continuity of the business and employment and thank everyone for their support so far. We have taken the decision to protect the business and its creditors, during this period, by filing a notice of intention to appoint administrators.

“The business has been hit very hard by the pandemic and the sudden rise in all costs. Covid loans were useful but, in the end, could not sufficiently compensate for reduced cash flow in the long term. It has been the perfect storm, but the team is confident that with a new structure Black Sheep will thrive and grow as the team sets course in a new direction.”

CAMRA’s Real Ale Cider and Perry Campaigns director Gillian Hough said: "The fact that one of the UK’s most recognisable independent family brewers has put out a notice to appoint administrators shows just how serious the cost-of-business crisis is for brewers and cider makers. Despite some support being available, CAMRA believes that government simply hasn't done enough to ensure that brewers are not forced to close by events beyond their control.

“Black Sheep is still brewing and producing beer, while its board is working hard to secure a sale of the business which will protect jobs and ensure it can continue to trade. 

“Imminent hikes in fixed costs like business rates and alcohol duty mean brewers and cider makers across the UK will be facing the same ‘perfect storm’ as the Yorkshire brewery. Black Sheep ales appear regularly at CAMRA events and its cask range is a much-loved sight at bars across the nation’s pubs, so we hope a solution can be found which secures Black Sheep’s future.”