Key Takeaways
- Black Hops Craft Pty Ltd and Green Hops Pty Ltd entered voluntary administration on 22–23 July 2026, with Chris Cook and James Robba of Worrells appointed as administrators — the business’s second voluntary administration after a first in 2024.
- Under s 436A of the Corporations Act 2001 (Cth), directors may resolve to appoint an administrator when the company is insolvent or likely to become insolvent — voluntary administration is a proactive tool, not a sign of defeat.
- An urgent Expression of Interest sale campaign is underway. Creditors should lodge a proof of debt promptly, attend the first creditors’ meeting (held within 8 business days of appointment), and take legal advice before voting on any DOCA.
- Directors of struggling businesses can access the safe harbour defence under s 588GA — but only if books are properly maintained, employee entitlements are paid, and ATO lodgements are current.
- At the second creditors’ meeting, creditors vote on three outcomes under s 439C: execute a Deed of Company Arrangement (DOCA), return the company to directors, or place the company into liquidation.
This is general information only and is not legal advice. You should obtain professional advice specific to your circumstances.
When Black Hops Craft Pty Ltd — the company behind one of Queensland’s most recognisable craft breweries — entered voluntary administration for the second time on 22–23 July 2026, it sent a signal that even well-known brands with loyal customer bases are not immune to the pressures now shaking the Australian independent brewing sector. Administrators Chris Cook and James Robba of Worrells (Small Business Restructuring Practitioners based in Gold Coast and Brisbane) were appointed to both Black Hops Craft Pty Ltd and Green Hops Pty Ltd, the joint entities behind the Black Hops business. As director Luke McCormack put it, the headwinds affecting the Australian independent brewing sector have never been stronger — and an 11th-hour collapse of sale discussions left the business with no viable option but voluntary administration. For Queensland business owners, creditors, and advisors, the Black Hops story is a practical case study in how voluntary administration actually works, why timing matters, and what every party should do next.
What Voluntary Administration Actually Is
Voluntary administration is a formal insolvency process under Part 5.3A of the Corporations Act 2001 (Cth). It is designed to give a company in financial distress a brief, structured breathing space to assess whether it can be saved — in whole or in part — before a decision is made about its future.
Under s 436A, a company’s directors may resolve to appoint an administrator when they believe on reasonable grounds that the company is insolvent or likely to become insolvent. This is a director-initiated process, and that is deliberate: the legislation rewards directors who act early and decisively rather than waiting until the company collapses into liquidation.
Once an administrator is appointed, a statutory moratorium takes effect immediately. Under ss 440A to 440D, creditors generally cannot commence or continue legal proceedings against the company, enforce security interests in company property, or exercise rights to recover property without the administrator’s consent or leave of the court. This moratorium is what gives the company room to breathe and gives the administrator time to assess the business.
The administration process moves quickly. The administrator must convene a first creditors’ meeting within 8 business days of appointment. At that meeting, creditors can vote to replace the administrator or form a creditors’ committee. The administrator then investigates the company’s affairs and prepares a detailed report for creditors.
The administration culminates in a second creditors’ meeting, at which creditors vote on one of three outcomes under s 439C:
- Execute a Deed of Company Arrangement (DOCA) — a binding agreement between the company and creditors, usually offering a return over time from a fund contributed by a third party or the business itself;
- Return the company to its directors — if the administrator concludes it is solvent or that no other outcome is appropriate; or
- Place the company into liquidation — if there is no viable restructure and no acceptable DOCA on the table.
Voluntary administration under Queensland insolvency law is not a last resort. Used correctly, it is a genuine restructuring tool — but only when deployed at the right time.
What Happens to the Business During Voluntary Administration
One of the most common misconceptions about voluntary administration is that it means the doors close. It does not. The administrator takes control of the company and may continue trading the business if they form the view that doing so is in the interests of creditors. Black Hops is a clear example: the business is trading while in administration, and an urgent Expression of Interest sale campaign is underway for the Black Hops and Green Hops brands and assets.
During administration, the administrator effectively steps into the shoes of management. Directors cannot exercise powers that are inconsistent with the administrator’s role, but the business can keep operating — staff come to work, suppliers are engaged, and customers are served. This continuity of trading is often critical to preserving the value of the business for a sale.
Contracts generally continue during administration. However, administrators have the power under the Act to disclaim onerous contracts, and counterparties need to understand their position carefully before making assumptions about whether existing agreements will be honoured.
For potential acquirers, a sale campaign during administration can be an attractive opportunity to acquire a brand, customer relationships, equipment, and goodwill at a price that reflects the company’s distress — but buyers need to move quickly, conduct proper due diligence, and understand the commercial and legal risks of buying out of an insolvent entity.
What the Black Hops Case Illustrates
Black Hops is not just a story about a brewery in trouble. It is a story about the compounding difficulty of operating in a sector where margins are thin, competition is fierce, and economic conditions have deteriorated sharply. Founded in Burleigh Heads in 2015, Black Hops grew to become one of Queensland’s largest independent craft brewers, producing up to 2.5 million litres per year and employing 70 staff at its peak. That is not a small business — it is a significant commercial operation.
The business first entered voluntary administration in 2024, was rescued by a consortium of investors, and has now entered administration again — this time after sale discussions broke down at the 11th hour, in director Luke McCormack’s own words. Administrator Chris Cook has stated that the objective is to run an orderly process that gives interested parties the opportunity to acquire the business while seeking to maximise outcomes for stakeholders.
For creditors, there are several specific legal issues that arise in an asset sale out of voluntary administration:
- Disclaimer of onerous contracts (s 568): An administrator or liquidator may disclaim onerous property, including leases, long-term supply agreements, and unprofitable contracts. Counterparties should take advice about their rights if they believe a key contract may be disclaimed.
- PPSA priority (Personal Property Securities Act 2009 (Cth)): Secured creditors and asset financiers need to confirm that their security interests are properly registered on the PPSR. Unperfected security interests may vest in the company on the appointment of an administrator, meaning the creditor loses their security entirely.
- Employee entitlements: Employee claims for unpaid wages, superannuation, annual leave, and redundancy entitlements rank as priority creditors in a liquidation under s 556 of the Corporations Act. If the business is not sold and the administration ends in liquidation, employees are paid before most unsecured creditors.
The Black Hops case is also a reminder that a second voluntary administration — following a failed rescue — puts creditors in a more difficult position than the first. The goodwill in the brand may have diminished, and the pool of potential acquirers may be smaller.
What Creditors Should Do Now
If you are a creditor of Black Hops Craft Pty Ltd or Green Hops Pty Ltd — whether an unsecured trade creditor, a secured financier, or a landlord — there are concrete steps you should take now, not when the second creditors’ meeting is called.
Lodge a proof of debt. Your ability to vote at creditors’ meetings and receive any dividend depends on lodging a valid proof of debt with the administrator. Do not assume the administrator already knows your claim — document it carefully and lodge it promptly.
Attend the first creditors’ meeting. The first meeting is held within 8 business days of appointment. You have the right to vote on whether to replace the administrator or form a creditors’ committee. This is your first opportunity to be heard, and many creditors miss it because they do not take it seriously.
Understand your position before the DOCA vote. At the second creditors’ meeting, you will be asked to vote under s 439C on whether to accept a DOCA, return the company to directors, or vote for liquidation. These are not abstract choices — they have very different financial outcomes for different classes of creditors. A DOCA may offer a better or worse return than liquidation depending on the specific proposal. Get legal advice before voting, not after.
Know your priority in liquidation. If the administration ends in liquidation, the priority order under s 556 determines who gets paid first. Secured creditors with perfected security interests rank ahead of employees, who rank ahead of unsecured creditors. Many unsecured creditors receive little or nothing in a liquidation. Understanding where you sit in that hierarchy before you vote is essential.
Our debt recovery team regularly advises creditors in exactly this situation — helping them assess their position, lodge proper proofs of debt, and make informed decisions at critical meetings.
What Directors of Struggling Businesses Should Know
The Black Hops story is also a warning for directors of businesses facing their own financial headwinds. The most important lesson is not that voluntary administration happened — it is that it happened twice, and that the second time, it came after sale talks that were “well advanced” but collapsed at the last minute.
Directors have personal exposure for insolvent trading under s 588G of the Corporations Act. But the legislation also provides a genuine safe harbour under s 588GA for directors who are taking a “course of action reasonably likely to lead to a better outcome” for the company and its creditors than immediate liquidation.
The safe harbour is not available automatically. To access it, directors must satisfy specific conditions:
- Books and records: The company’s financial records must be properly maintained. A director cannot rely on safe harbour if the company’s books are inadequate.
- Employee entitlements: All employee entitlements that are due and payable must be being paid. A director cannot park wages and super obligations and claim safe harbour.
- ATO lodgements: Tax returns, BAS statements, and other ATO reporting obligations must be current. Outstanding lodgements disqualify a director from safe harbour protection.
Safe harbour is not a free pass — it is a conditional protection for directors who are genuinely trying to turn a business around responsibly. And critically, the timing of voluntary administration matters enormously. Appointing an administrator when there is still value in the business, creditor relationships are intact, and a genuine sale or restructure is achievable produces far better outcomes than waiting until the cash runs out and the administrator walks into an empty shell.
If you are a director facing financial difficulty, the question to ask is not “how do I avoid voluntary administration?” The question is “am I using every available tool — including voluntary administration — at the right time to protect the business, the creditors, and myself?”
That is the conversation we have regularly with directors who come to us before the crisis becomes a catastrophe. Our insolvency and restructuring practice exists precisely for that moment.
How Boss Lawyers Can Help
At Boss Lawyers, we act on both sides of voluntary administration and insolvency. We advise creditors — trade creditors, landlords, financiers — on their rights during administration, how to maximise their recovery, and whether a proposed DOCA is in their interests. We also advise directors who are confronting difficult trading conditions and need to understand their obligations under s 588G, their options under s 588GA, and whether voluntary administration is the right call — and if so, when. If you are a business owner watching the Black Hops story and wondering whether it could happen to you, or a creditor trying to work out what your exposure is, the right time to get advice is now. Call us on 1300 267 711 or get in touch through our website. The conversation is confidential, and the earlier you have it, the more options you have.
Frequently Asked Questions
Voluntary administration is a formal insolvency process under Part 5.3A of the Corporations Act 2001 (Cth). Under s 436A, a company’s directors may appoint an administrator when they believe the company is insolvent or likely to become insolvent. The administrator takes control of the company, investigates its affairs, and convenes two creditors’ meetings. At the second meeting, creditors vote under s 439C on one of three outcomes: a Deed of Company Arrangement (DOCA), return to directors, or liquidation. The process is designed to give a distressed company a structured opportunity to restructure or achieve a better outcome for creditors than immediate liquidation.
When a company enters voluntary administration, a statutory moratorium takes effect under ss 440A to 440D of the Corporations Act 2001 (Cth). Creditors generally cannot commence or continue legal proceedings, enforce security interests, or recover property without the administrator’s consent or court approval. Creditors should lodge a proof of debt with the administrator, attend the first creditors’ meeting (held within 8 business days of appointment), and vote at the second creditors’ meeting on the outcome. In a DOCA scenario, creditors receive a return from a fund contributed by a third party or the company. In liquidation, the priority order under s 556 applies — secured creditors and employees rank ahead of unsecured creditors.
Yes. Voluntary administration does not automatically extinguish a director’s personal liability for insolvent trading under s 588G of the Corporations Act 2001 (Cth). If the company incurred debts while insolvent and the director failed to prevent this, the liquidator (if the company ultimately enters liquidation) may pursue the director personally for compensation. The safe harbour defence under s 588GA is available to directors who took a course of action reasonably likely to lead to a better outcome than liquidation, but only if they maintained proper books, paid employee entitlements, and kept ATO lodgements current. Taking early legal advice is critical to protecting a director’s position.
Voluntary administration is a process aimed at finding the best outcome for creditors — which may include saving the business through a DOCA — while liquidation is a winding-up process aimed at realising the company’s assets and distributing the proceeds to creditors before the company is deregistered. In voluntary administration, the company may continue trading and may be sold as a going concern. In liquidation, trading generally ceases and assets are realised. Voluntary administration is often used as a precursor to a DOCA or a sale of business assets, and may end in liquidation if no better outcome is available. Both are formal insolvency processes under the Corporations Act 2001 (Cth), but they serve different purposes and have different implications for creditors, employees, and directors.
Voluntary administration is designed to move quickly. The first creditors’ meeting must be held within 8 business days of the administrator’s appointment. The second creditors’ meeting — at which creditors vote on the company’s future — must generally be held within 20 to 25 business days of appointment, though the court may extend this period in complex cases. In practice, most voluntary administrations are resolved within four to six weeks, though larger or more complex administrations with significant sale processes can take longer with court-approved extensions. The brevity of the process is deliberate: it limits the moratorium period and drives creditors to a decision quickly.
This is general information only and is not legal advice. You should obtain professional advice specific to your circumstances. The law described in this article reflects the Corporations Act 2001 (Cth) as at July 2026.
About the Author
Mark Harley is the Principal Solicitor of Boss Lawyers, a Brisbane-based commercial litigation and insolvency practice. With 17 years of experience acting for creditors, directors, and businesses in complex insolvency and commercial disputes, Mark provides practical, strategic advice at the moments that matter most. Boss Lawyers is located at Level 27, Santos Place, 32 Turbot Street, Brisbane QLD 4000. Call 1300 267 711 or visit bosslawyers.com.au.
