BrewDog creditors and staff face losses after administration report

Administrators AlixPartners have reported that BrewDog’s retail division lacks sufficient funds to pay numerous creditors following the company’s collapse and subsequent takeover by US-based Tilray.

Key losses include £2.4 million owed in unpaid value-added tax to HMRC and approximately £489,000 in outstanding wages and holiday pay for former employees. Displaced staff have been directed to the UK government’s Insolvency Service for compensation. Additionally, roughly 200,000 crowdfunding investors through the ‘Equity for Punks’ scheme are expected to see their shares become valueless.

The insolvency process followed a £33 million rescue deal in March, which saw Tilray acquire the BrewDog brand, intellectual property, and UK breweries. The transition resulted in the closure of dozens of venues and left hundreds of British businesses, ranging from small bakeries to major institutions like West Ham United FC and Manchester University, with unpaid invoices.

While the parent company, BrewDog PLC, is expected to satisfy a £3.66 million tax claim in full, HSBC faces an estimated £16.8 million shortfall on its £61 million claim. Administrators attributed the lack of funds to lower-than-expected asset sale proceeds and increased administrative costs, including expenses related to securing closed properties.