- Published
Former Brewdog staff and several creditors of the collapsed Scottish beer giant are not expected to receive anything following its takeover.
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staff → publish → takeover
A report from administrators AlixPartners said there were "insufficient funds" for payouts to those owed money by the brewer's retail arm.
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report → say → arm
The Aberdeenshire-based firm had more than £500m of debts when it was sold in March to US drinks firm Tilray in a £33m rescue deal.
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it → base → deal
Administrators said about £489,000 was owed for staff wages and accrued holiday pay.
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489,000 → say → wages
A further £2.4m was owed to HMRC for unpaid VAT.
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m → owe → VAT
BrewDog's takeover saw 38 bars close across the UK and £20m in unpaid bills left to hundreds of UK businesses.
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bars → see → businesses
These ranged from coffee shops, bakeries and laundry services, to lawyers, councils and holiday parks.
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These → range → lawyers
Creditors included West Ham United FC, Lord's Cricket Ground and Manchester University.
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Creditors → include → FC
AlixPartners' said there were now "insufficient funds" for preferential creditors to be repaid.
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creditors → say → ?
This is due to lower than expected funds raised through sales of Brewdog assets and increased costs during the administration period.
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This → expect → period
The administrators cited unforeseen costs around the security of closed Brewdog pubs after a number of "unauthorised occupiers" gained access.
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number → cite → access
AlixPartners said it worked with landlords and lawyers to remove them.
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it → say → them
The report highlights small amounts of money raised through asset sales.
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report → highlight → 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.
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that → include → sale
The rest were abandoned.
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rest → abandon → ?
A settlement involving drinks equipment sold to Marylebone Cricket Club, which owns Lords, which generated £62,000.
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which → involve → 62,000
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.
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company → expect → tax
Brewdog's biggest debt was to financial services group HSBC, which was owed more than £61m across various banking arms.
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which → owe → arms
It has recovered tens of millions of pounds, but still faces an estimated shortfall of £16.8m.
The report noted that this could be reduced through asset sales in the United States.
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this → recover → States
Private equity backer TSG, which took a 22% stake in the brewer in 2017, is set to lose £27.6m.
Brewdog also owes around £190m to unsecured creditors.
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Brewdog → take → creditors
They are expected to receive less than a penny in the pound of what they are owed.
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they → expect → what
In March 440 staff were made redundant and 736 employees transferred to Tilray, after the US firm bought Brewdog's brand and UK operation.
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firm → make → brand
Eleven bars were retained as part of the sale while 38 other pubs closed immediately.
Brewdog's collapse also rendered the shares of about 200,000 crowdfunding investors worthless.
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shares → retain → investors
Earlier this year, Alixpartners confirmed that investors in the Equity for Punks scheme would get no return on their shares.
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investors → confirm → shares
Investors typically spent about £500 on shares - although others invested much larger sums - in return for a stake in the company, discounts and perks.
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others → spend → company
The administrators stated these shares now had "no value".
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shares → state → value
Brewdog, which was founded in 2007 by friends James Watt and Martin Dickie, had four breweries and about 100 pubs across the world at its peak.
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which → found → peak
Watt said he was "heartbroken" after the collapse and apologised to staff and investors.
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he → say → staff
The administrators said that workers made redundant had been provided with information on government support.
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workers → say → support
Brewdog's owner Tilray has been approached for comment.
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owner → approach → comment
The Aporia
