Key facts
- Former Brewdog staff and creditors will receive nothing from the administration process.
- About £489,000 was owed for staff wages and accrued holiday pay.
- A further £2.4 million was owed to HMRC for unpaid VAT.
- Unsecured creditors are expected to receive less than a penny in the pound.
- Brewdog's parent company BrewDog PLC still expects to pay HMRC £3.66 million in full.
- Private equity backer TSG is set to lose £27.6 million.
Former Brewdog staff and creditors of the collapsed Scottish beer giant are not expected to receive any funds from the administration process, according to a report from administrators AlixPartners. The report states there are "insufficient funds" for payouts to those owed money by the brewer's retail arm. Approximately £489,000 was owed for staff wages and accrued holiday pay, with a further £2.4 million owed to HMRC for unpaid VAT. Unsecured creditors, who are owed around £190 million, are expected to receive less than a penny in the pound.
Administrators cited unforeseen costs related to the security of closed Brewdog pubs after "unauthorised occupiers" gained access, as well as lower than expected funds raised through asset sales. Small amounts were raised from the sale of a field for £41,300, nine vehicles for £6,250, and a settlement involving drinks equipment for £62,000.
Brewdog's parent company BrewDog PLC is still expected to pay its preferential creditor, HMRC, in full for £3.66 million in tax owed. The company's largest debt was to financial services group HSBC, which was owed over £61 million and faces an estimated shortfall of £16.8 million, potentially reduced by asset sales in the US. Private equity backer TSG, which held a 22% stake, is set to lose £27.6 million.
In March, 440 staff were made redundant and 736 employees transferred to US firm Tilray, which bought Brewdog's brand and UK operation. Eleven bars were retained as part of the sale, while 38 other pubs closed immediately. Brewdog's collapse also rendered the shares of about 200,000 crowdfunding investors worthless, with administrators confirming earlier this year that these shares now had "no value". James Watt, co-founder, expressed being "heartbroken" and apologised to staff and investors.