{"id":59361,"title":"Brewdog retail arm lacks funds to pay creditors","publisher":"Stockmark.IT","author":"Stockmark.IT Website","published":"2026-09-19T10:07:00+00:00","modified":"2026-09-19T10:07:00+00:00","canonical_url":"https://stockmark.it/insufficient-funds-to-pay-brewdog-creditors-after-takeover-deal/","markdown_url":"https://stockmark.it/insufficient-funds-to-pay-brewdog-creditors-after-takeover-deal.md","json_url":"https://stockmark.it/insufficient-funds-to-pay-brewdog-creditors-after-takeover-deal.json","category":"Retail","categories":["Retail"],"featured_image":"https://i0.wp.com/stockmark.it/wp-content/uploads/2026/09/brewdog-retail-arm-lacks-funds-to-pay-creditors.webp?fit=1200%2C800&quality=80&ssl=1","format":"news","language":"en-GB","content":"Creditors of the collapsed Scottish brewer Brewdog are not expected to receive any payments from the administration of its retail operations. A report issued by administrators AlixPartners confirmed that there are insufficient funds available to settle outstanding debts. This includes a sum of 2.4 million pounds owed to HM Revenue and Customs for unpaid value added tax. The report further stated that 489,000 pounds in unpaid wages and holiday pay will not be distributed through the administration process. Employees affected by this shortfall have instead received compensation via the UK government’s Insolvency Service.\n\nThe financial difficulties of the Aberdeenshire-based company were compounded by lower than expected proceeds from asset sales and higher than anticipated costs during the administration period. AlixPartners cited unforeseen expenses related to the security of closed pubs, where unauthorised occupiers gained access to the premises. The administrators worked with landlords and legal professionals to remove these individuals. The modest funds raised through asset disposals included the sale of a 7.8 acre field in Potterton to a local farmer for 41,300 pounds. Additionally, nine vehicles of varying roadworthiness generated only 6,250 pounds from a single sale, with the remainder abandoned. A settlement involving drinks equipment sold to the Marylebone Cricket Club produced 62,000 pounds.\n\nBrewdog had accumulated more than 500 million pounds in debts when it was sold in March to US drinks firm Tilray in a 33 million pound rescue deal. The takeover resulted in the closure of 38 bars across the UK and left 20 million pounds in unpaid bills for hundreds of UK businesses. These creditors included coffee shops, bakeries, laundry services, lawyers, councils, and holiday parks. Notable names among the unpaid entities were West Ham United FC, Lord’s Cricket Ground, and Manchester University. AlixPartners stated that there are now insufficient funds to repay preferential creditors due to the reduced asset sale values and increased administrative costs.\n\nThe parent company BrewDog PLC is still expected to pay its preferential creditor, HMRC, in full for 3.66 million pounds in tax owed, primarily consisting of VAT and excise duty. The company’s largest debt was to financial services group HSBC, which was owed more than 61 million pounds across various banking arms. Although HSBC has recovered tens of millions of pounds, it still faces an estimated shortfall of 16.8 million pounds. The report noted that this deficit could potentially be reduced through asset sales in the United States. Private equity backer TSG, which took a 22 per cent stake in the brewer in 2017, is set to lose 27.6 million pounds. Unsecured creditors, who are owed around 190 million pounds, are expected to receive less than a penny in the pound of what they are owed.\n\nThe collapse of Brewdog led to the immediate closure of 38 UK pubs. In March, 440 staff were made redundant, while 736 employees were transferred to Tilray after the US firm acquired the brand and UK operation. Redundant staff have been advised to claim for unpaid wages through the government’s Insolvency Service. Eleven bars were retained as part of the sale. The collapse also rendered the shares of approximately 200,000 crowdfunding investors worthless. AlixPartners confirmed that investors in the Equity for Punks scheme would receive no return on their shares, which typically cost around 500 pounds but sometimes involved larger sums. The administrators stated that these shares now have no value. Brewdog, founded in 2007 by James Watt and Martin Dickie, had four breweries and about 100 pubs across the world at its peak. Watt described himself as heartbroken after the collapse and apologised to staff and investors. Tilray has been approached for comment."}