Former Brewdog employees and a group of creditors will not be paid after the administrators overseeing the brewer's retail arm concluded there were insufficient funds to cover preferential claims. AlixPartners, appointed to manage the collapse, reported that roughly £489,000 was owed for staff wages and accrued holiday pay, and a further £2.4m was outstanding to HMRC for unpaid VAT linked to the retail business.
The collapse followed the March sale of Brewdog's operations and brand to US drinks company Tilray in a £33m rescue transaction, completed against a background of more than £500m of group debts. The takeover transferred 736 employees to Tilray, while 440 staff were made redundant and 38 pubs closed immediately; eleven outlets were included in the sale.
AlixPartners said receipts from asset disposals fell well short of expectations and administration costs had risen, leaving no pot for preferential creditors. The report highlights small recoveries from individual sales, including a 7.8 acre field in Potterton sold for £41,300, a single vehicle sale netting £6,250 while others were abandoned, and a drinks-equipment settlement with Marylebone Cricket Club that produced £62,000. Administrators also pointed to unforeseen security costs after unauthorised occupiers entered several closed pubs, work they say required coordination with landlords and lawyers.
The wider creditor picture is stark. Parent company BrewDog PLC remains expected to meet a separate preferential HMRC claim of £3.66m, mainly for VAT and excise duty. Lenders also suffered: HSBC, which was owed more than £61m across its banking arms, has recovered tens of millions but still faces an estimated shortfall of £16.8m, a gap the administrators say might be reduced by further US asset sales. Private equity backer TSG, which took a 22% stake in 2017, is set to lose £27.6m.
Unsecured creditors are owed about £190m and are projected to receive less than a penny in the pound. The collapse also wiped value from Brewdog's crowdfunding scheme, leaving the shares held by around 200,000 investors without monetary return; AlixPartners has confirmed Equity for Punks investors will not be paid.
Founder James Watt described himself as "heartbroken" after the collapse and apologised to staff and investors. Administrators have provided information to redundant workers on available government support. Tilray, now owner of the brand and the retained UK operation, has been approached for comment.
