The Real Brewing Pub Company, the seven-strong pub company arm of Derby Brewing Company, has entered administration.

Director Trevor Harris and managing director Paul Harris have announced the brewery will not be affected and will continue operating two of its sites – the Hole in the Wall, Mickleover, and NOTSA, Aston on Trent – under a new pub company.

They cited an extremely challenging trading environment due to a combination of the pandemic and post-Covid loan burdens, recruitment challenges, interest rates, supplier cost increases, uncapped energy contracts, and the cost of living crisis.

The company was working with the HMRC regarding arrears predominantly from the pandemic. However, these were demanded to be paid back within a short period and meant the business could no longer continue to trade.

Its two freehold sites – The Greyhound, Friar Gate, and Derby Brewing Tap House, Derwent Street – will be sold to clear the arrears to meet their time frame.

Both will remain open and be sold as going concern, safeguarding jobs, and are now being marketed by the administrator.

Three sites – The Clubhouse, Derby; The Pig, Lichfield; and The Pointing Dogs, Matlock – will close with immediate effect.

According to the directors: “Thankfully in all cases staff will be paid and there will be an opportunity to continue Derby Brewing’s story all be it in a different and smaller guise.”

MD Paul Harris said: “It is with huge regret that we have been unable to steer the business through this extremely challenging period. We have unfortunately joined a growing list of operators to close previously successful businesses. The final nail in the coffin was a combination of the government allowing energy contracts five-fold previous levels to remain in place once their 50% support was removed and the in our view unreasonable behaviour of the HMRC.

“We are extremely sad for the team members who have lost their jobs and the dismantling of a business we as a family have been built over nearly 20 years.”

Director Trevor Harris said: “This is an extremely upsetting situation for the team and family, we are pleased however that we have been able to continue the name of Derby Brewing, returning the business into a smaller family operation where we hope to build from.”