The boss of a Black Country brewery that has been taken over after going into administration today said expansion plans could still become a reality.

Bob Norton, managing director at Highgate Brewery, Sandymount Road, Walsall, said the future was bright and a second site may still be needed after the firm was bought within days of going into administration.

He said: “There were historical debts that were inherited. We are only now starting to reap the rewards of our new bottling plant which means we can bottle our own beer as well as the success of the export market which is new to us, as well as more of our product going into the supermarkets.

“Unfortunately with the impact of the recession and decline in the domestic market this was too late to stop Highgate going into administration, but we were out of administration almost immediately and we now have new directors in place who will have their own business plan to take Highgate forward.

“We may well outgrow the site and if we want to grow the site it would make sense to plan ahead to find a second site to compliment the first site.

“But it would be split between the two and the original would continue brewing.”

Highgate Brewery Ltd went into administration last week with tax debts reported to be in excess of £1 million. The brewer was simultaneously sold in a deal for £80,000 by administrator Bob Gibbons of the firm Arrans to two property developers.

Mr Norton said: “It was decided to restructure the business, but the banks, both our own and others, were unwilling to support the group. There was no option but to go into administration.”

The business, renamed Highgate & Davenports Brewery Limited, was bought by Simon Toon and David Lindol, described by Companies House documentation as property developers. The brewery is currently in the middle of a consultation process and some redundancies among 25 staff are “inevitable” said Mr Norton.

Highgate Brewery brews Highgate ales and relaunched Davenports. It has brewed continuously on its Sandymount Road site for 110 years. The building is Grade II listed.