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BrewDog accumulated debts exceeding £500 million before going into administration, leaving thousands of small investors poised to lose everything, according to newly disclosed paperwork.
The former successful craft beer company had debts of £553.8 million to creditors at the time of its sale, resulting in an estimated £480 million shortfall following its pre-pack rescue agreement.
Shareholders, including those who joined its highly publicized ‘Equity for Punks’ crowdfunding initiative, are not anticipated to ‘receive any return’, while unsecured creditors owed almost £400 million are expected to receive less than one penny for every pound they are owed.
The numbers reveal the extent of the company’s severe decline, which included its brewery and 11 bars being acquired by US company Tilray for only £33 million – along with the shutting down of 38 pubs and 484 job losses.
Even large lenders have not avoided the consequences, with secured creditors such asHSBCdealing with an anticipated deficit of £85 million.
The disclosures arrive as the company encounters renewed criticism following allegations that it is trying to bring back previous employees under new conditions after the collapse – a gesture that unions have described as “ethically unacceptable.”
Previous staff members at BrewDog’s Merchant City bar in Glasgow were reached out to and motivated to apply for their positions again after the acquisition.
In an email viewed by BBC Scotland News, Steven Hill, BrewDog’s head of operations, mentioned that the new owner Tilray Brands UK is “now working towards reopening a small number of additional bars.”
It is known that these include the Merchant City in Glasgow and Castlegate in Aberdeen, with the company “establishing new teams” as part of the strategy.
Hill stated: “We acknowledge that the past few weeks have been extremely challenging and are likely to have significantly affected you and your team.”
We understand that you might have intense emotions regarding what has occurred, and we completely respect your choice not to continue participating.
The message stated that former employees were being reached out to because of their “prior association with the bar,” with positions available such as general manager and kitchen staff.
However, Unite has initiated a strong criticism of the initiative, alleging that the company is essentially compelling employees to vie for positions they once occupied.
Bryan Simpson, the union’s national representative for the hospitality sector, stated: ‘This is a clear case of fire and rehire – and it is ethically unacceptable and, in our opinion, illegal.’
This is an obvious effort to remove workers’ rights and make them vie for jobs they should still have.
He cautioned that the union is planning legal steps, stating, “These employees constructed these facilities. To terminate their employment and then bring them back under possibly less favorable conditions constitutes a misuse of authority.”
We are urging Brewdog’s new management to stop this procedure right away and restore employees to their positions with all their rights preserved.
Simpson stated that current job security measures should be maintained when establishments reopen in the same place, implying that employees should be moved into new positions without delay.
BrewDog and Tilray have been contacted for their response.
The Scottish brewery, which had an estimated value of £2 billion a few years back, was recently sold to the American cannabis and beverage company Tilray for much less than that figure.
A total of 38 UK locations were shut down, as CEO James Taylor informed 484 employees during a company-wide conference call that their positions had been terminated.
Mr. Watt – who withdrew from the position of CEO in 2024 due to claims of a negative work environment at BrewDog – mentioned that he would have ‘liked to preserve every job and every equity punk investment’ but ‘wasn’t able to,’ stating: ‘That will continue to affect me.’
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