THE future of Beechworth's Billson's Beverages has been secured following a vote in favour of restructuring and recapitalising the town's beverage icon.
Creditors of Billson's met on Thursday, December 5 to vote to execute a deed of company arrangement, recapitalising the company which entered voluntary administration in July.
Billson's directors Nathan and Felicity Cowan released a statement on Thursday informing their community of the news and said they were thrilled with the outcome.
"This marks a pivotal milestone for us of which we are truly grateful," they said.
"The restructure will allow us to refocus on what we love most: the Beechworth venue experience, our range of traditional flavours and the sites pristine alpine spring water.
The pair said the plan would safeguard the roles of the remaining 42 employees with Billson's, with opportunity to expand on its workforce.
"Whether you’ve enjoyed one of our drinks, visited us in Beechworth, or sent a kind message of support on social media, you’ve played a vital role in keeping the Billson’s dream alive," they said.
Creditors were faced with three available options to vote on; whether company control would be returned to directors, entering a deed of company agreement or enter liquidation.
A report received by creditors at the meeting outlined the key events leading up to the appointment of administrators on July 31, with a decline in sales, cost-of-living pressures and intense competition cited as some of the company's top difficulties.
The report also stated destruction and repair costs caused by mechanical failures and can leak issues in 2023 also contributed to liquidity challenges.
Billson's Beverages grew at a "substantial rate" across a short period of time, growing from $400,000 in revenue in 2019 to $105 million in revenue by 2023.
The company set a target of $150 million revenue for the 2023/24 financial year and invested heavily in marketing, new product development and inventory, according to the report.
But by November 2023, sales declined markedly against budget and increasing financial pressure was placed on the business.
At the date of the administrators' appointment, Billson's workforce consisted of 101 employees, with 52 being made redundant and a further 13 employees resigning during the administration.
Creditors also heard details of how administrators from McGrathNicol were seeking a new buyer for the company.
"Since 23 October 2024, administrators have been negotiating with an unrelated preferred bidder on finalising a sale," the report said.
"The asset sale is with an unrelated, confidential party and remains subject to ongoing negotiation at this stage."
The proposed agreement voted on by creditors sees the company's $12.2 million debt to NAB paid in full as a secured creditor, while unsecured creditors will get between seven to 10 cents on the dollar.