After the collapse of BrewDog’s retail division, a significant number of creditors are facing substantial financial losses, as outlined in the most recent assessment from administrators AlixPartners. The report highlights that assets available are inadequate to cover the £500 million of debt left by the Scottish brewery’s downfall, which has also resulted in major layoffs, the closure of bars, and large amounts left unpaid to suppliers and employees.
Creditors and HMRC Suffer Heavy Losses
According to the administrators, the administration has produced no available funds for disbursement to many of BrewDog’s creditors. This group includes HMRC, still owed £2.4 million in unpaid VAT. Outstanding staff payments are also significant, with £489,000 in wages and holiday entitlements unrecovered; affected staff have instead had to claim through the UK Government’s Insolvency Service for any support.
The Aberdeenshire-based company entered administration with massive liabilities, just months before US giant Tilray stepped in and bought its UK brewing and bar business through a £33 million rescue transaction in March. The collapse resulted in the closure of 38 bars across the UK and left £20 million in unpaid invoices to hundreds of businesses—including cafes, bakeries, law firms, and football clubs—as previously detailed.
Major institutions like West Ham United FC, Lord’s Cricket Ground, and Manchester University are among those left unpaid. The administrator’s analysis cited reduced proceeds from asset disposals and escalated administration-related expenses for the shortfall. AlixPartners noted particularly large costs driven by securing and protecting closed BrewDog premises, with several being unlawfully occupied. Landlords and legal representatives collaborated with the administrators to evict these unauthorized occupants.
Minimal Returns from Asset Disposals and Outstanding Debts
Only minimal revenue was generated from BrewDog’s asset sales during the administration. One example is a 7.8-acre field in Potterton, Aberdeenshire, which fetched £41,300 from a local farmer. Meanwhile, nine vehicles raised a combined £6,250, with the administrators noting that most vehicles left behind were old and abandoned. Separately, drinks equipment was sold to Marylebone Cricket Club, proprietors of Lord’s, for £62,000.
BrewDog PLC, the parent firm, remains liable for paying HMRC £3.66 million—largely VAT and excise— which administrators expect to be settled in full.
HSBC is BrewDog’s single largest creditor, owed more than £61 million in total across its various divisions. While tens of millions have been recovered by HSBC, there remains an unresolved sum of at least £16.8 million, potentially reducible after future US asset sales. TSG, a private equity investor that acquired a 22% stake in BrewDog in 2017, faces a loss of £27.6 million.
There are also roughly £190 million owed to unsecured creditors, for whom the expectation is a return of less than one penny per pound owed.
Severe Impact on Shareholders and Employees
The effects have been felt not just by company creditors but also by shareholders and staff. The collapse rendered shares held by approximately 200,000 participants in the Equity for Punks crowdfunding scheme worthless. Many of these individuals invested around £500 each—sometimes even more—in the form of equity and discounts, but the administrator stated that these holdings are now “entirely without value.”
The March acquisition by Tilray led to 440 redundancies, and another 736 employees were transferred to Tilray as part of the deal. Those made redundant were pointed towards the government’s Insolvency Service to make claims for lost wages, with AlixPartners confirming guidance and information were provided. The transaction kept just 11 bars running, while the other 38 ceased trading immediately following the sale.
Founded in 2007 by James Watt and Martin Dickie, BrewDog had reached the point of running four breweries and close to 100 bars globally at its height. In the wake of the collapse, co-founder Watt said he was “heartbroken” and apologized publicly to both staff and shareholders. No statements have yet come from Tilray, the brewery’s new owner.