The Masham-based Black Sheep Brewery has called in the administrators after bosses said the firm had faced a “perform storm” of problems.
The brewery said it was hit hard by the pandemic and more recently sharp cost rises.
The company announced last month that it had launched a strategic review to explore funding options to develop the business, including a possible sale.
But last week it announced it was no longer considering the sale of the company and today, in a further statement, it said it was appointing administrators Teneo Financial Advisory Ltd to protect the business and creditors.
Charlene Lyons, chief executive and executive chair of Black Sheep Brewery, said: “The directors have done their utmost to deliver new investment into the existing corporate structure. This has not been possible, but we are progressing with our discussions around a sale of the business.
“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.
“We are focused on achieving continuity of the business and employment and thank everyone for their support so far. We have taken the decision to protect the business and its creditors, during this period, by filing a notice of intention to appoint administrators.
Charlene added: “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.”