BrewDog Enters Administration as Tilray Buys Assets in £33m Deal
Hundreds of workers have lost their jobs and dozens of pubs have shut their doors after Scottish craft beer maker BrewDog entered administration.
US-based beverages and medical cannabis group Tilray has acquired BrewDog’s UK brewing operations, brand and 11 pubs in a £33 million deal. Administrators from AlixPartners confirmed that while 733 roles have been safeguarded, 484 employees have been made redundant and 38 bars have closed after being excluded from the sale.
They also stated that shareholders, including participants in BrewDog’s high-profile “Equity for Punks” fundraising scheme, will not receive any returns from the transaction.
BrewDog, founded in 2007 by James Watt and Martin Dickie, had brought in administrators after struggling to return to profitability in recent years. The company had reported significant losses, including a £37 million deficit last year, and had already announced bar closures and job cuts prior to the administration process.
AlixPartners said there had been strong interest in the business but no offer capable of preserving the company in full. As a result, dozens of pubs across the UK were closed immediately.
The trade union Unite the Union described the situation as devastating for hospitality workers. General Secretary Sharon Graham criticised the handling of redundancies, while hospitality lead Bryan Simpson condemned the manner in which staff were informed of job losses.
Under the agreement, Tilray will take control of BrewDog’s Ellon brewery in Aberdeenshire and its distribution hub in Motherwell. The company’s 18 franchised bars in the UK and overseas will continue trading. However, BrewDog’s German operations, including its Berlin brewery and bar, are set to be liquidated. Negotiations over the firm’s US and Australian assets are ongoing.
BrewDog rose from a start-up in Aberdeenshire to a global brand with about 100 pubs worldwide and four breweries. Its “Equity for Punks” initiative attracted roughly 200,000 small investors and raised around £75 million before closing to new participants in 2021. However, preference shareholders — including private equity firm TSG Consumer Partners, which bought a 22% stake in 2017 — were prioritised in any sale process.
In recent years, the company faced mounting financial pressure, reputational challenges and criticism over wage policies. Founder James Watt stepped down as chief executive and moved into a co-founder role, while Dickie exited the business last year.
The sale marks a dramatic chapter in BrewDog’s trajectory from fast-growing industry disruptor to a company forced into restructuring, with significant consequences for staff and small investors alike.
