The deal came after BrewDog fell into administration on Monday, in a move which will leave the brand’s crowdfund investors empty handed
BrewDog in Westgate Street, Cardiff(Image: Western Mail)
BrewDog has announced it will close 38 bars, resulting in the loss of 484 jobs, despite the craft beer company being acquired in a rescue deal by an American firm.
Tilray Brands, a US-based producer of medicinal cannabis and craft beer, has purchased the BrewDog brand in a £33 million transaction.
The acquisition followed BrewDog going into administration on Monday, leaving the brand’s crowdfund investors with nothing.
Tilray acquired several BrewDog assets including the global brand and associated intellectual property, its UK brewing operation, and 11 of its pub venues across the UK and Ireland.
However, administrators confirmed this would lead to the closure of the majority of BrewDog’s bars, with 38 set to shut and 484 employees facing redundancy.
BrewDog’s 18 franchise bars in the UK and internationally will remain open.
The Tilray deal will see it assume control of BrewDog facilities including its brewery in Ellon, Aberdeenshire, and The Hop Hub, a national distribution centre in Motherwell, Lanarkshire.
It will also safeguard 733 jobs in the UK, where staff will transition to Tilray.
The brewer, known for craft beers such as Punk IPA and Elvis Juice, closed its pubs on Monday as it finalised the takeover.
In February, consultants from AlixPartners were brought in to conduct a strategic review and oversee the sale process for the business.
However, the firm confirmed on Monday that insolvency experts from the advisory company had been appointed as administrators after weeks of negotiations.
It is understood that founder James Watt was amongst those who held discussions in an attempt to secure a possible takeover.
The uncertainty surrounding the business had prompted concerns from those who invested in BrewDog through its “equity for punks” scheme.
The company ran several crowdfunding campaigns up until 2021.
The administrators confirmed that all equity holders, including the “equity for punks” investors, will receive nothing and not see any returns from the transaction.
Clare Kennedy, a partner and managing director at AlixPartners said: “As one would expect over the past two weeks, we have received significant interest in the BrewDog business from prospective buyers across both the trade and investment communities.
“In Tilray, we have secured a purchaser with a passion for craft brewing who will be an excellent custodian and sponsor of the business in the months and years ahead.”
Tilray is separately in talks to acquire certain BrewDog assets in the US and Australia.
Irwin D Simon, chairman and chief executive of Tilray Brands, said: “BrewDog is one of the most iconic, mission-driven craft beer brands in the UK.
“It helped redefine modern craft beer through bold innovation, fearless creativity and an unwavering commitment to great beer.
“As we begin a new chapter for this great brand, our priority is to refocus BrewDog on the craft beer excellence that made it beloved in the first place and strategically invest to return the operations to profitable growth.
“BrewDog’s future is bright, and we are committed to ensuring the brand continues to lead and inspire the global craft beer movement.”
Harriet Cross, MP for Gordon and Buchan, where BrewDog is headquartered, described the redundancies as “disastrous” and confirmed they would be approaching the company for further details on how positions would be impacted.
She said: “The loss of 484 jobs and the closure of 38 bars is disastrous, both for the North East and the rest of the UK.
“My immediate thoughts go to the hardworking staff who have been impacted by this through no fault of their own.
“Tilray has told me, in its words, that brewing operations in Ellon remain central to the business and the company has no plans to relocate production from Scotland.
“These cutbacks will be deeply concerning for everyone who has an association with BrewDog.”
She continued: “This announcement underlines the growing issues facing the drinks industry and hospitality sector, with challenging market conditions causing financial difficulties like this.
“I will immediately be writing to BrewDog’s new owners asking where these affected roles are, the future plans for the business, and what support is being given to staff at this unsettling time.”
Unite the union says it will also contact the company for answers on unpaid wages and transparency surrounding the changes.
Unite’s national lead for hospitality Bryan Simpson said: “The way in which senior management have conducted themselves throughout this sales process has been nothing short of a national disgrace – with workers being given no information about the company’s plans or their futures.
“For the CEO to tell workers that they were redundant with immediate effect, on a conference call with only 25 minutes’ notice, has echoes of P&O and is deplorable. Unite will be ensuring that our members receive everything they are legally entitled to.”
The BrewDog bars to close “with immediate effect”
England and Wales
- Basingstoke, Hampshire
- Bath, Somerset
- Bournemouth, Dorset
- Bristol – Baldwin Street
- Bristol – Harbourside
- Cambridge, Cambridgeshire
- Cardiff, Wales
- Carlisle, Cumbria
- Cheltenham, Gloucestershire
- Exeter, Devon
- London – Soho
- London – Camden Road
- London – Chancery Lane
- London – Clerkenwell
- London – Ealing
- London – Hammersmith
- London – Seething Lane
- London – Tower Bridge
- London – Wandsworth
- Liverpool, Merseyside
- Manchester – DogHouse Manchester
- Manchester – Manchester Outpost
- Milton Keynes, Buckinghamshire
- Newcastle, Tyne and Wear
- Norwich, Norfolk
- Nottingham, Nottinghamshire
- Plymouth, Devon
- Reading, Berkshire
- Southampton, Hampshire
Scotland
- Aberdeen – Castlegate
- Aberdeen – Union Square
- Edinburgh – Cowgate
- Glasgow – Merchant City
- Glasgow – Argyle Street
- Inverurie
- Perth
- St Andrews
- Stirling
The BrewDog bars acquired by Tilray
England
- Birmingham, West Midlands
- London – Canary Wharf
- London – Paddington
- London – Seven Dials
- London – Tower Hill
- London – Waterloo
- Manchester – Peter Street
Scotland
- Ellon – DogTap
- Edinburgh – DogHouse Edinburgh
- Edinburgh – Edinburgh Lothian Road
