Nathan and Felicity Cowan announced on social media that Billson’s would continue. Photo: Facebook.
Beechworth’s iconic drinks brand Billson’s Beverages Pty Ltd looks set to avoid liquidation after creditors voted to keep the battling brewery alive.
“After an uncertain year, we are thrilled to share that we have made significant progress in securing the future of Billson’s and our historic brewery in Beechworth,” declared the husband-and-wife team behind the popular premix drinks brand in a social media post.
Nathan and Felicity Cowan were forced to put the company into administration in July citing “incomprehensible” challenges and “mistakes made along the way”.
A report published last week by administrators McGrath Nicol detailed the company’s decline and had put forward three options including an end to the administration, a deed of company arrangement or liquidation.
Unsecured creditors owed more than $7 million stood to recoup as little as 7 cents on the dollar while the NAB would be repaid $12.2 million.
“This morning, our proposal to restructure and recapitalise the business was approved by our creditors,” the Cowans said.
“This marks a pivotal milestone for us of which we are truly grateful.
“Importantly, this plan safeguards roles for all of our amazing, resilient team members, with opportunities for new hires / rehires to help us through what promises to be a bustling summer.”
Billson’s pre-mix brand boomed before declining sales in late 2023. Photo: Supplied.
The Cowans took over the historic brewery in Beechworth in 2017 and the unique business flourished.
Visitors flocked to the refurbished brewery and the introduction of ready-to-drink vodka products found a market eager to embrace its blend of modern beverages and traditional flavours.
In the last financial year, sales had boomed to $105 million, however, the McGrath Nicol report outlined overly ambitious targets and excessive spending on marketing and stock in the face of a sudden decline in sales.
Increased competition, cost-of-living pressures and mechanical failures in the production process all contributed to the spiralling debt.
The decision of the creditors to agree to a deed of company arrangement will keep the operation afloat, however ready-to-drink spirits and cordial making look set to be split up.
The alcoholic component of the business will be sold off separately to fund the arrangement while the Cowans will be able to refinance and operate the soft drinks, cordials and hospitality brand.
In signing off on their social media announcement, the Cowans thanked their customers and community for their continued support.
“Whether you’ve enjoyed one of our drinks, visited us in Beechworth, or sent a kind message of support on social media, you’ve played a vital role in keeping the Billson’s dream alive,” they said.
“We look forward to sharing more details about our restructure and plans in the coming weeks, but for now, we simply want to say thank you.”
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