Key facts
- Creditors of collapsed Scottish beer giant BrewDog are unlikely to be paid in full, with approximately £190 million owed.
- Administrators AlixPartners reported insufficient funds to cover debts including unpaid wages, taxes owed to HM Revenue and Customs, and overdue bills.
- The US cannabis and drinks company Tilray acquired BrewDog's brand, intellectual property, UK breweries, and 11 bars for about £33 million.
- The deal resulted in the closure of 38 bars and the redundancy of 440 staff.
- Investments from 200,000 'equity punks' who crowdfunded the business are now worthless.
- HSBC, a major lender, is expected to recover only a portion of the £61 million it is owed.
Creditors of the collapsed Scottish beer company BrewDog are unlikely to recover the full amount of the approximately £190 million they are owed, according to administrators AlixPartners. The firm warned of insufficient funds to cover debts including unpaid wages, taxes to HM Revenue and Customs, and overdue bills from other businesses.
Earlier this year, BrewDog was sold to US firm Tilray in a £33 million rescue deal that encompassed its brand, intellectual property, UK breweries, and 11 bars. However, this transaction did not include most of BrewDog's chain of bars, leading to the closure of 38 locations and the redundancy of 440 employees.
The collapse has rendered worthless the investments of around 200,000 crowdfunding investors, known as 'equity punks'. AlixPartners cited lower-than-expected sums from asset sales, such as vehicles and a field, as well as increased costs related to removing unauthorized occupiers from shuttered pubs, as reasons for the shortfall.
While staff owed £489,000 in wages and holiday pay have been compensated through the government's redundancy payment scheme, preferential creditors like the UK government will not be fully repaid. A separate £3.66 million tax debt to HMRC is expected to be paid in full. Unsecured creditors, including notable entities like Lord's Cricket Ground, West Ham United FC, and Manchester University, are anticipated to receive less than a penny in the pound.
Private equity investor TSG, which held a 22% stake, is set to lose its £27.6 million investment. HSBC, a primary lender, is expected to recover tens of millions of pounds but faces an estimated shortfall of £16.8 million.