ICSM Manufacturing Insolvency News: collapsed Brewdog sold with investors left high and dry with £75m lost - but the owner says he's 'heartbroken' 

By Harry Mottram: The self-styled punk disrupter of the brewing industry Brewdog has been sold to US firm Tilray for £33m after it went into administration. Only 11 of its bars have been saved in the deal while 38 others were closed and 484 staff have been made redundant. Founder James Watt claimed he was 'heartbroken' but those who invested in the firm's Equity for Punks scheme which raised £75m will not receive a penny and will no doubt be rather more ‘heartbroken.’

Unite the trade union who represents the staff said the workers were given just 25 minutes notice of the sale and their sacking – while Brewdog's administrators, AlixPartners said: "We are in direct contact with all those affected by the closures and are providing specialist outside support such that people can claim their statutory entitlements as quickly as possible. Additionally, we are in discussion with several of the UK's leading hospitality providers about vacancies elsewhere in the industry and will be making these details available to help former BrewDog employees secure new employment."

What the administrators didn’t mention was the bad publicity James Watt allegedly created for his firm with his inappropriate behaviour to female staff revealed in a 2022 BBC documentary and the management’s creation of a toxic working place atmosphere. Mr Watt's lawyer told the BBC: "This is categorically denied. At no time has Mr Watt given unwelcome attention to any female bartender. That account is not true - this was fully investigated by Centric HC who concluded that there was no substance to these claims." However the BBC reported several accounts that contrdicted this statement with Katelynn Ising, who worked in DogTap, Brewdog's flagship bar and brewery in Canal Winchester, Ohio, who said female staff would dress down when they knew Mr Watt would be in their bars due to his behaviour.

Another brewer of beer has crashed this year. Overtone Brewing Company in Scotland is being liquidated leaving £2.2m in debts although it is hoped the defunct firm could be sold.  In December the Phantom Brewing Company, closed with David Rubin and David Birne, from Begbies Traynor, appointed to find a buyer or to liquidate the outfit.

In another beer manufacturing insolvency story Keystone Brewing has been saved. Administrators from FRP Advisory have completed a pre-packaged sale of the business and assets of the Keystone Brewing Group to West Yorkshire-based Saltaire Brewery. Pre-packs have been criticised for failing to protect creditors with debts often written off as part of the deal. Administrators from FRP Advisory have completed the pre-packaged sale of Keystone Brewing Group and its brands Black Sheep Brewery and Purity Brewing making beer in sites in Warwickshire and Yorkshire.

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