The deal came after BrewDog fell into administration
BrewDog has announced the closure of 38 bars, resulting in the loss of 484 jobs, following its acquisition by an American firm in a rescue deal. Tilray Brands, a US-based producer of medicinal cannabis and craft beer, purchased the BrewDog brand for £33 million, reports BritPanorama.
The acquisition comes after BrewDog entered administration on Monday, leaving its crowdfund investors without returns. The deal involves several BrewDog assets, including the global brand, associated intellectual property, its UK brewing operation, and 11 of its pub venues in the UK and Ireland.
Despite the transaction, administrators confirmed that the majority of BrewDog’s bars would close, leading to significant job losses. BrewDog’s 18 franchise bars in the UK and abroad will remain operational. The Tilray acquisition will secure 733 jobs in the UK, which will transition to Tilray.
The rescue deal allows Tilray to take control of BrewDog’s facilities, including its brewery in Ellon, Aberdeenshire, and a national distribution centre in Motherwell, Lanarkshire. With this acquisition, the firm aims to refocus BrewDog on its craft beer heritage and invest in strategies to achieve profitable growth.
BrewDog, known for craft beers like Punk IPA and Elvis Juice, closed its pubs on Monday as the takeover was finalized. Earlier in February, consultants from AlixPartners conducted a strategic review and managed the sale process.
Insolvency experts from AlixPartners were appointed as administrators after weeks of negotiations. Founder James Watt reportedly participated in discussions to find a potential buyer, and concerns regarding the business’s future had arisen among investors involved in BrewDog’s crowdfunding campaigns until 2021.
Administrators confirmed that equity holders, including investors from the “equity for punks” scheme, would not see any returns from the transaction. Clare Kennedy from AlixPartners commented on the interest among prospective buyers, emphasizing that Tilray has a passion for craft brewing.
As part of the acquisition strategy, Tilray is also in talks to acquire certain BrewDog assets in the US and Australia. Irwin D. Simon, chairman and CEO of Tilray Brands, described BrewDog as an iconic brand that redefined modern craft beer and stated their commitment to its future.
Harriet Cross, MP for Gordon and Buchan, referred to the announced redundancies as “disastrous” and confirmed that they would be contacting the company to seek clarity on the impact on affected staff. She highlighted the need for immediate attention to the serious issues facing the drinks and hospitality sectors, reflecting on the financial difficulties prompted by market challenges.
Unite the union expressed its desire for answers concerning unpaid wages and changes at BrewDog. Bryan Simpson, Unite’s national lead for hospitality, criticized the management for their handling of the situation, drawing parallels to other poorly managed corporate situations.
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
Ireland
The scenario unfolding in the beverage sector is indicative of the broader challenges facing hospitality in the current economic climate. Firm management decisions are vital not just for sustainability but for the livelihoods of those who contribute to this dynamic industry. The situation calls for a careful consideration of workforce implications as market conditions shift.
