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Home > Latest News > Troubled Cobra saved by Coors

Troubled Cobra saved by Coors

Carling owner Molson Coors has purchased a controlling stake in beer brand Cobra which has been experiencing difficulties with its creditors for some time. Cobra had entered pre-packaged administration which allowed Molson Coors to pay £14m for a 50.1% stake in the company. Wells & Young’s brew Cobra beer under licence but neither them nor the brand’s other unsecured creditors will receive a penny.

Debts of around £75 million were owed to Cobra’s creditor’s, £20 million of which was owing to secured creditors, mainly banks, and this figure will be repaid in full. Lord Bilimoria, owner of Cobra, said, “I feel gutted that the unsecured creditors aren’t going to be paid.”

Cobra made a loss of around £16m last year and in fact the company has never made a profit despite a 20% sales increase per annum. They have previously reduced their staffing levels from one hundred and fifty workers down to just fifty, including the departure of four company directors.

Bilimoria concluded, “We had no choice but to go down this route. I feel terrible about that.” He will retain a stake in the company.

Mark Hunter, Chief Executive of Molson Coors UK said, “Cobra is an excellent fit with our UK portfolio – alongside international brands such as Grolsch, Blue Moon and Sol – and builds our commitment to offer customers an outstanding range of beers to pair with food.” He continued, “The immediate business priorities are to ensure a smooth transition and continuity for Cobra’s customers, while we integrate the Cobra brand and many of its people into our organisation.”

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