Interest in one of the best-known breweries in the north of England has left bosses feeling “positive and optimistic”, despite announcing plans to appoint administrators.

Based in Masham, North Yorkshire, the Black Sheep brewery produces a range of ales but is best known for its signature Black Sheep Best Bitter, which is found in pubs up and down the UK. But the effect of the pandemic and rising costs has, according to Charlene Lyons, chief executive and executive chair of the firm, forced it to file “a notice of intention to appoint administrators”.

But speaking to the Northern Echo, Lyons dismissed talk of a potential closure, with the parties who have expressed an interest in Black Sheep looking to grow the business. The firm launched a “review of its strategic options” on April 11, including a potential sale, but two weeks later announced its shares were no longer for sale, but a sale of the business and assets would be considered.

“We are feeling positive and optimistic,” said Lyons. “There is absolutely nothing right now to suggest that we are facing closure. We have several parties who are excited about working with us supporting the brand, the business and the people. We are feeling fairly confident in the future.”

Following the announcement of the plan to appoint administrators, Lyons said. “Black Sheep Brewery has great products, a compelling brand and is supported by a dedicated team of people who are capable of delivering great results for the business in a different structure.

“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 are confident that with a new structure Black Sheep will thrive and grow as the team set course in a new direction.”

In February, Black Sheep increased prices by 19.5 per cent with managing director Rob Theakston admitting that cost pressures left it with no choice. Black Sheep was founded by Rob’s father Paul Theakston in 1992 and, as well as the brewery, the business also includes four pubs in Yorkshire.