Former Brewdog staff and several creditors of the collapsed Scottish beer giant are not expected to receive anything from the administration process. A report from administrators AlixPartners said there were "insufficient funds" for payouts to those owed money by Brewdog's retail arm. The Aberdeenshire-based brewer had more than £500m of debts when it was sold in March to US drinks firm Tilray in a £33m rescue deal.
Administrators said about £489,000 was owed for staff wages and accrued holiday pay. A further £2.4m was owed to HMRC for unpaid VAT. From a £1bn dream to a brutal collapse: How Brewdog hit the rocks BrewDog's takeover saw 38 bars close across the UK and £20m in unpaid bills left to hundreds of UK businesses.
Unpaid businesses ranged from coffee shops, bakeries and laundry services, to lawyers, councils and holiday parks. Creditors included West Ham United FC, Lord's Cricket Ground and Manchester University. AlixPartners said there were now "insufficient funds" for preferential creditors to be repaid.
This is due to lower than expected funds raised through sales of Brewdog assets and increased costs during the administration period. The administrators cited unforeseen costs around the security of closed Brewdog pubs after a number of "unauthorised occupiers" gained access. AlixPartners said it worked with landlords and lawyers to remove them.
The report highlights small amounts of money raised through asset sales. These include: A 7.8 acre field in Potterton, Aberdeenshire, which sold to a local farmer for £41,300 Nine Brewdog vehicles of "old age and varying roadworthiness" that made only £6,250 from just one sale. A settlement involving drinks equipment sold to Marylebone Cricket Club, which owns Lords, which generated £62,000.
Are you a Brewdog creditor or worker affected by this? Parent company BrewDog PLC is still expected to pay its preferential creditor, HMRC, in full for £3.66m tax owed - mainly VAT and excise duty. Brewdog's biggest debt was to financial services group HSBC, which was owed more than £61m across various banking arms.
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