Newcastle's Northern Alchemy brewery has appointed liquidators after grappling with soaring costs.
Established 11 years ago within a refurbished shipping container, the brewery quickly made a name for itself with an array of enticing pale ales, lagers, and beers that were a hit at the local Cumberland Arms and during its own weekend open tap sessions.
The brewery's beverages became so sought-after that in 2017 expansion was necessary, prompting a move to The Old Coal Yard, the site of a former Byker coal depot, which provided ample space for growth. In a display of solidarity during the pandemic, Northern Alchemy joined forces with 15 other breweries to form The Northern Stronghold collective, an initiative that included collaborating on a beer delivery service aimed at sustaining operations throughout the lockdowns.
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Despite their efforts and collaborations through the tough times of Covid, market pressures and persistent cost increases have compelled the directors to halt trading. Connect Insolvency Limited based in Westerhope has been appointed as the liquidator for the troubled brewery.
Northern Alchemy's management said in a statement: "It is with great sadness that at the end of our 10th year of trading we have to share some sad news about Northern Alchemy. As with many others in our industry we are no longer able to continue creating the innovative and popular beers that we have made over the last decade.
"As our margins are squeezed harder and harder by price increases across the board we recognise that we cannot continue. As such the company has entered the voluntary insolvency process. We have worked hard over the last 12 months to try and wrap things up in the best way. Despite our efforts, and our directors working pretty much without recompense during this time, we are unable to navigate a route through these hardships.", reports .
"Northern Alchemy Ltd has now ceased trading. We encourage any customers with outstanding invoices owed to check their inboxes in the coming days for details of how to make your final payments and we encourage you to make these payments with immediate effect upon receiving the new invoice(s) from us.
"We would like to take this opportunity to thank our fantastic customers, friends and family for all the love and support you have given us over the years. Thank you for everything and having us along for the ride. Buy local when and where you can and support your local pub/bar through these hard times. Much love and gratitude, The Directors, Northern Alchemy Ltd."
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The Old Coal Yard events space issued a separate message on social media to reassure customers that it will continue operations despite the departure of its resident brewery: "Rest assured The Old Coal Yard is going to continue on without hosting them here any longer and a fuller statement about our intentions and the exciting changes we expect to develop here (once we're over the sadness of losing the fabulous brewery here). Hard times indeed."
Fans expressed their sadness at the announcement of the brewery's closure, with Facebook comments pouring in. One patron remarked: "Really sad news. Thanks for the great beers and also keeping me supplied with mini kegs during COVID times."
Another customer added: "Gutted to hear! Our industry never really got going again after the pandemic, things just got harder and harder every year and continuing to do so. Best of luck in moving on and hope everything works out for the best."