Former staff members and various creditors of the collapsed Scottish brewing giant BrewDog are not expected to receive any financial payouts from the company’s administration process. According to a recent report by administrators AlixPartners, there are “insufficient funds” available to repay those owed money by the retailer’s UK arm.
BrewDog, based in Aberdeenshire, was sold in March to US beverage company Tilray in a £33m rescue agreement, at which point the firm carried debts exceeding £500m. The administrators confirmed that approximately £489,000 was owed to employees for outstanding wages and accrued holiday pay, while an additional £2.4m was due to HM Revenue and Customs (HMRC) for unpaid VAT.
AlixPartners attributed the lack of funds to lower-than-anticipated proceeds from asset sales and increased administrative costs. These costs were partly driven by unforeseen security expenses after “unauthorised occupiers” gained access to closed BrewDog pubs, requiring the involvement of landlords and legal teams for removals.
The report highlighted meagre returns from asset liquidations. A 7.8-acre field in Potterton, Aberdeenshire, was sold to a local farmer for £41,300. Of nine BrewDog vehicles, only one fetched £6,250, with the remainder abandoned due to age and poor roadworthiness. A settlement involving drinks equipment sold to the Marylebone Cricket Club, which owns Lord’s Cricket Ground, generated £62,000.
While preferential creditors such as HMRC are still expected to be paid in full for a £3.66m tax bill—primarily consisting of VAT and excise duty—other creditors face significant losses. BrewDog’s largest debt was to HSBC, which is owed more than £61m across various banking divisions. Although tens of millions have been recovered, a shortfall of an estimated £16.8m remains, though this could be reduced through further asset sales in the United States.
Private equity firm TSG, which held a 22% stake in the brewer since 2017, is projected to lose £27.6m. Unsecured creditors, a group that includes West Ham United FC, Lord’s Cricket Ground, and Manchester University, are expected to recover less than one penny for every pound they are owed.
The collapse resulted in the immediate closure of 38 UK bars, leaving hundreds of businesses, ranging from bakeries and laundry services to councils, with £20m in unpaid bills. In March, 440 staff were made redundant while 736 were transferred to Tilray following the acquisition of the brand and UK operations, with only eleven bars retained in the sale.
Additionally, the shares of approximately 200,000 investors who participated in the “Equity for Punks” crowdfunding scheme have been rendered worthless. Earlier this year, AlixPartners confirmed that these investors would receive no return on their stakes, which typically cost around £500 in exchange for company shares and perks.
Founded in 2007 by James Watt and Martin Dickie, BrewDog reached its peak with four breweries and roughly 100 pubs globally. Watt described himself as “heartbroken” by the collapse and issued an apology to staff and investors. Administrators stated that redundant workers have been provided with information regarding government support. Tilray has been approached for comment.
Crowdfunding investors losing everything is harsh, but expected. These high-risk bets rarely pay off long-term.
Ridiculous that a single car sold for £6,250 while the rest were abandoned. Where did all the money actually go?
I thought Tilray bought the whole company? How can the brand survive while the debts wipe out everyone else?
Unbelievable that hundreds of staff get nothing. The brand was sold, but the workers paid the price. Very angry.