Failed Sydney Beer Co owes creditors nearly $10m, including $33k to the McGrath Foundation

Failed Sydney Beer Co, in which Australian cricket legend Brett Lee is a minor shareholder, owes more than 60 creditors nearly $10 million, including a charity founded by fellow ex-paceman and teammate Glenn McGrath.

Minutes from the first meeting have been handed over to the Australian Securities and Investments Commission, and they reveal that the Sydney Beer Co owes more than 60 creditors nearly $10 million.

One of the creditors that is owed money is the cancer charity founded by Lee’s former teammate and fellow Aussie paceman Glenn McGrath.

The McGrath Foundation (started by McGrath after his first wife, Jane, died from breast cancer in 2008) is owed $33,000.

The Australian Taxation Office is also owed $1.3 million and business platform group Spenda Co is owed $280,000.

But the most money is owed to an entity operated by the boutique beer brewer’s chair, David Catterall. That figure is $6.2 million which came from a “related party loan”.

Other creditors named in the minutes include Pegus Bookkeeping, Global Horizon Imports, Unique Cleaning Co and Liquor Stax.

In fact the company — which is jointly owned by actor and writer Matt Nable — owes exactly $9.76 million to 64 creditors.

The Sydney Beer Co was founded in 2016. Whilst Mr Lee was a brand ambassador of the company, he has never been a director, nor had any role in its management or day-to-day running.

At the start of March this year, the company appointed RSM Australia partners Richard Stone and Brett Lord as administrators.

That move was made just six months after the company raised more than $6 million to fund its expansion into the US.

According to its website, Sydney Beer Co products are sold in more than 350 venues and in retailers including Endeavour-owned Dan Murphy’s and BWS, as well as independent liquor stores.

Lord said Sydney Beer Co directors have indicated they would put forward a deed of company arrangement proposal.

“In liquidation process there is unlikely to be sufficient assets realisations available to pay to any class of creditor in full,” he said.

“The administrators will continue with further investigations on affairs of the company.”

The Sydney Beer Co is the latest drinks company to succumb to a slowdown in consumer spending and heavy increases in government excise.

Prime Minister Anthony Albanese has promised to put beer taxes on ice for two years from August.

The draught beer excise usually increases twice a year, with the most recent hike of just over one per cent at the start of February.

Lee was one of Australia’s most successful fast bowlers, taking 310 wickets in 76 Test matches between 1999 and 2008.

- With The Nightly