Adnams hires City advisers to search for new funds

One of the UK’s largest brewers has appointed advisers to help it attract new funds to shore up its bottom line amid widespread insolvencies in the sector.

Adnams has begun working with Alvarez & Marshal on several funding options, including the possibility of private capital from a family office or an individual investor, Sky News has reported.

A sale of some of the brewer’s freehold property, including its pubs and inns, are also being considered as a way of boosting its cash flow, the report said.

Adnams is believed to be weighing up the move in order to raise capital to pay off its debts and fund future investment opportunities.

Last year was an especially difficult year for brewers, with several craft beer brands going bust, including Yorkshire-based Black Sheep and Bone Machine Brewing Co, where brewers cited Brexit red tape and dampened consumer demand as the main challenges.

Dr Jonathan Adnams, the 134-year-old company’s chairman and a descendant of its founders, acknowledged to investors recently that it had been labouring under the same challenging conditions as its competitors, pointing to the decline in the number of pubs across the UK.

Adnams didn’t immediately respond to a request for comment, but a spokesperson for the firm told Sky News: “We have instructed advisers to explore a range of options to fund our future growth plans.”