Award-winning Black Country brewery saved by new owners days after entering liquidation

Backyard Brewhouse, at The Gatehouse, Lichfield Road, Brownhills, entered liquidation on Thursday, March 2, with all staff having been made redundant over preceding weeks.

52 Degrees Brewing has now bought the Backyard Brewhouse assets, brand, beers and recipes.

Backyard Brewhouse was started by director Austen Morgan and Mike Bates in 2008.

Initially they had a five brewers barrel kit making about 3,500 pints a week, but by 2020 it had grown to produce 650,000 pints a year.

Mr Morgan explained that the impact of the Covid pandemic has been tough.

"By the end of 2021 we knew we still had a viable business but would need some help to survive," he said.

"In January 2022, the business was sold in its entirety to an entrepreneurial company that were new to the brewing industry. They took the business as a going concern with the desire to drive things forward.

"For the past 12 months I have remained with the business helping the new owners become familiar with the business, the broader trade and understanding the ins and outs of a cask ale brewery.

"Sadly, the efforts of the previous 12 months have not been sufficient to get the brewery to a stable state. The hangover from Covid combined with crippling energy costs and a broader financial crisis have contributed to an unsustainable situation.

"So it is with sadness that of last Thursday the business was placed into voluntary liquidation, with all staff having been made redundant a few weeks ago.

"I would like to thank all those who have supported us over the last 15 years – suppliers and customers alike. Many of whom have become good friends of the brewery. It has been challenging at times but always immensely enjoyable."

52 Degrees director Simon Baldwin said that the same Backyard beer would now be brewed in the same location by the same brewer.

"From a beer perspective its business as usual for our customers," he added.

52 Degrees also includes Warwickshire Beer Company and Grasshopper Brewery in Nottingham.

Mr Baldwin said: "These are tough times for any small business. The utilities here have increased in price by four times in just one year and that is difficult to pass on entirely because our customers have the same pressures. Its a similar situation with our raw materials, malts and hops.

"We're confident that with a new business model, a new cost base and our beer going into kegs as well as casks, cans and bottles we'll be able to thrive in a very competitive area. Its all about the beer and Backyard-brewed great beer.

"We're very happy that the Backyard brand and beers will continue. They have a huge following in the region and we're happy to be able to continue that."

Backyard's beers include Christmas ales Bad Santa and Sanity Claus, golden ale Gold and blonde ale Blonde.

Several other Midlands breweries have closed recently or are to stop production this year.

Morton Brewery, at Essington, is selling off its brewing equipment as owner Gary Morton is retiring from brewing, while Slater's Brewery, in Stafford, announced it was closing in December and Digbeth's Dig Brew confirmed its closure in January.