Creditors of the Scottish brewing company BrewDog face significant losses as administrators confirm there are insufficient funds to settle outstanding debts. According to a report from AlixPartners, the company’s retail arm lacks the capital to repay preferential creditors, including a £2.4 million VAT liability owed to HMRC.

The administration process follows a March rescue deal in which US-based Tilray acquired the brand and UK operations for £33 million. This transition resulted in the closure of 38 bars and left approximately £20 million in unpaid bills to a wide range of businesses, including local service providers, sports venues, and educational institutions. While 736 employees were transferred to Tilray, 440 staff members were made redundant. These workers have been directed to the UK government’s Insolvency Service to recover unpaid wages and holiday pay, as these costs were not covered by the administration.

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Asset liquidation efforts have yielded limited returns. A field in Aberdeenshire sold for £41,300, and equipment sales to the Marylebone Cricket Club generated £62,000. Administrators noted that costs were further impacted by the need to secure closed pub sites against unauthorized occupants. Meanwhile, unsecured creditors, who are owed roughly £190 million, are expected to receive less than one penny for every pound owed.

The collapse has also affected approximately 200,000 investors who participated in the company's "Equity for Punks" crowdfunding scheme. Administrators have confirmed that these shares currently hold no value. While the parent company, BrewDog PLC, is expected to settle a £3.66 million tax debt, major financial stakeholders, including HSBC and private equity firm TSG, face substantial shortfalls.

Source: BBC News