Former employees and creditors of BrewDog’s retail division are expected to receive no payment for outstanding debts following the company's collapse into administration. A progress report released by administrators AlixPartners on Friday, Sept. 18, confirmed that there are insufficient funds to distribute money to those owed cash by the insolvent business.
The financial shortfall follows a rescue deal earlier this year in which the American drinks company Tilray acquired the BrewDog brand, its intellectual property, UK breweries, and 11 bars. That transaction was valued at approximately £33 million, but it did not include 36 venues that were forced to close during the insolvency process.
According to the administrators' report, the company owes approximately £489,000 in wage arrears and accrued holiday pay to retail employees. Additionally, HM Revenue and Customs (HMRC)—the UK's tax authority—is owed £2.4 million in unpaid Value Added Tax (VAT). The report noted that a "reduced level of realisations" for the retail arm and rising costs during the administration period prevented payments to these preferential creditors.
The lack of available funds affects nearly 500 former staff members who lost their jobs when the 36 venues closed. These workers are collectively owed £489,000. While administrators stated that redundant workers were provided with information on how to access government support programs, they will not receive the specific back pay owed to them by their former employer.
The financial impact extends to approximately 200,000 crowdfunding investors whose shares were rendered worthless by the takeover deal. Furthermore, BrewDog PLC owes roughly £190 million to unsecured creditors. The report estimates these creditors—which often include suppliers and service providers—will receive less than a penny for every pound they are owed.
The administration of the retail division has concluded with the determination that funds are exhausted. The new owners, Tilray, have been approached for comment.