BrewDog creditors owed £190m will not be paid in full, say administrators
There are ‘insufficient funds’ to pay unpaid wages, tax owed to HMRC and overdue bills, accountants say Accountants picking over the remains of BrewDog, the “punk” beer company that collapsed earlier this year , have said that creditors who are owed about £190m will not be paid back. In an update on their progress, administrators at AlixPartners warned there were “insufficient funds” to pay debts…
Administrators of the collapsed "punk" beer company BrewDog have revealed that creditors owed about £190 million will not receive full payments. Accountants from AlixPartners stated there are insufficient funds to pay debts in full, covering unpaid wages, tax owed to HMRC, and overdue bills. BrewDog's collapse earlier this year led to the loss of 38 bars and 440 jobs, rendering investments of 200,000 equity investors worthless.
The US cannabis and drinks company Tilray acquired BrewDog's brand, intellectual property, UK breweries, and bars for £33 million in March, but the deal did not include most of the bars. AlixPartners cited additional costs for removing unauthorized occupants from shuttered bars and limited recovery from asset sales as reasons for the insufficiency.
Unsecured creditors, including businesses like Lord’s Cricket Ground and Manchester University, will receive less than one penny on the pound. The UK government, as a supposedly "preferential" creditor, will not receive full payments for the bars business, and private equity investor TSG, which invested £213 million in 2017, saw its entire investment wiped out.
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