Key facts
- BrewDog's creditors, owed approximately £190 million, will not be paid back in full.
- Administrators AlixPartners reported insufficient funds to cover debts from unpaid wages, taxes, and overdue bills.
- Former staff owed £489,000 in wages and holiday pay have already been compensated via a government scheme.
- A separate sum of £3.66 million owed to HMRC by BrewDog's parent company will be paid back in full.
- Unsecured creditors are expected to receive less than a penny in the pound.
- Private equity investor TSG is set to lose its £27.6 million investment.
Creditors of the collapsed Scottish beer giant BrewDog are unlikely to recover any of the approximately £190 million they are owed, according to administrators AlixPartners. In an update, the administrators stated there were insufficient funds from asset sales to fully repay debts, including unpaid wages, taxes owed to HM Revenue and Customs (HMRC), and overdue bills from other businesses.
While former staff owed £489,000 in wages and holiday pay have been compensated through a government scheme, there are not enough funds to repay the government or £2.4 million in VAT owed to HMRC. However, BrewDog's parent company BrewDog PLC is expected to pay a separate £3.66 million owed to HMRC in full.
Unsecured creditors, which include businesses like Lord's Cricket Ground and West Ham United FC, are expected to receive less than a penny in the pound. Private equity investor TSG, which had a 22% stake, will not recoup its £27.6 million investment. Lender HSBC is expected to recover about £42 million of the £61 million it is owed.
The administration process faced additional costs from removing "unauthorised occupiers" from shuttered bars and limited returns from the sale of assets like vehicles. In March, US company Tilray acquired BrewDog's brand, intellectual property, UK breweries, and 11 bars for about £33 million. This deal did not include most of BrewDog's bars, leading to 38 closures and 440 job losses. The collapse also rendered worthless the investments of 200,000 crowdfunding investors.
Co-founder James Watt expressed being "heartbroken" by the collapse and has since launched new businesses, offering former investors free shares, though concerns have been raised about how contact details were obtained.