Options: The Black Sheep Brewery

The Black Sheep Brewery, the Yorkshire brewer and pub operator which was a spin-off from Theakstons, has appointed Teneo to conduct a review, including the possible sale of the company.

Black Sheep said it is currently experiencing good sales volumes of its beers but is seeing a “significant constraint on funding in light of the prevailing economic conditions.”

The Black Sheep board said it is considering all options, one being a merger or an acquisition of the company.

It said it is not currently in talks with any potential offeror and is not in receipt of any approach with regard to a possible offer.

Black Sheep is the latest in a growing number of mid-sized and smaller brewers to be forced to seek remedial action or even close because of rising costs.

Fallen Brewing in Stirling ceased trading last April while Heineken announced the closure of the historic Caledonian Brewery in Edinburgh.