The administration of Scottish brewing company Brewdog has revealed that numerous creditors will not receive payments from the liquidation process due to inadequate funds, according to a report released by administrators AlixPartners.
The retail arm of Brewdog owes £2.4m in unpaid value-added tax to HMRC, alongside £489,000 in outstanding wages and holiday pay owed to former employees. These amounts will not be recovered through the administration proceedings. Staff members have instead been directed to seek compensation through the UK government’s Insolvency Service. The company faced debts exceeding £500m when it was acquired in March by US-based drinks manufacturer Tilray in a transaction valued at £33m.
The takeover resulted in the closure of 38 bars across the UK and left approximately £20m in unpaid invoices owed to hundreds of British businesses. Creditors range from small operations including coffee shops and bakeries to major institutions such as West Ham United FC, Lord’s Cricket Ground, and Manchester University. AlixPartners cited lower-than-expected asset sale proceeds and elevated administrative expenses as reasons for the insufficient funds available to preferential creditors. Additional costs arose from securing closed Brewdog locations after unauthorized individuals accessed several properties, requiring collaboration with landlords and legal representatives to address the issue.
Asset liquidation generated relatively modest returns, including £41,300 from the sale of a field in Potterton, Aberdeenshire, and £62,000 from equipment settled through Marylebone Cricket Club. The parent company BrewDog PLC is expected to satisfy HMRC’s £3.66m tax claim in full. HSBC, the largest creditor with claims exceeding £61m, has recovered tens of millions but faces an estimated £16.8m shortfall. Approximately 200,000 crowdfunding investors through the Equity for Punks scheme will receive no return on their investments, with shares deemed valueless. In March, 440 employees were made redundant while 736 transferred to Tilray’s operations.
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