Scottish-based craft beer giant Brewdog was sold out of administration this week with the loss of 484 jobs and the closure of 38 UK bars. About 220,000 “equity punks” – small investors – stand to lose £75million between them.
The purchaser, US-based Tilray Brands, was the first cannabis company to trade publicly on a major US stock exchange. It acquired Brewdog for £33million – less than the £50million founders James Watt (pictured) and Martin Dickie each reportedly pocketed by selling a 22% stake in the company to private equity in 2017.
Founded in 2007 and fuelled by an irreverent ‘punk’ ethos, the Aberdeenshire-based company pursued an aggressive expansion programme that took it around the world, with a total of 129 bars in 57 countries; at one stage it was said to be worth £2billion.
Following the sale, James admitted that “with the benefit of hindsight“, Brewdog had expanded too fast and too far.
“I am heartbroken for all of the hard working and passionate team members who have lost their jobs. I am heartbroken for all of our brilliant equity punks who did not get the return on their investment they wanted. And heartbroken to have dedicated the best 20 years of my life to something that ultimately did not have the ending we all wished for.“
James stepped down as CEO in 2024 following allegations against him of inappropriate behaviour, which he has denied. His co-founder Martin left the company last year citing “personal reasons” – shortly after launching his own start-up to produce medicinal cannabis.
This week’s sale only covers the UK portion of the company, with details of its future operations in the US and Australia yet to be announced. Its Berlin-based German operation will be liquidated, while 18 franchised bars are expected to continue trading.
Of the 38 bars closed with immediate effect this week, nine were in London, three in Manchester and two in Bristol. A total of 733 jobs were saved, with the surviving Brewdog bars including the biggest, at Waterloo station, along with Canary Wharf, Manchester Peter Street, Birmingham, two in Edinburgh (Doghouse and Lothian Road) and the bar closest to the company base at Ellon in Aberdeenshire.
