BrewDog Creditors Face Massive Losses as Funds Run Dry

Administrators AlixPartners announced that creditors owed approximately £190 million by the collapsed beer company BrewDog will not be paid in full. A progress report revealed that insufficient funds remain to cover debts, including £489,000 in employee wages and holiday pay and £2.4 million in unpaid VAT owed to HM Revenue & Customs.

AlixPartners attributed the shortfall to high costs associated with removing squatters from closed bars and the collapse of several lease transfer deals. While the retail arm cannot meet its obligations, the parent company BrewDog PLC is still expected to pay HM Revenue & Customs £3.66 million in full. Displaced workers will instead be compensated through the government's Redundancy Payments Scheme, though the government will not be fully repaid for those costs.

The insolvency follows a March 2026 pre-pack sale where US firm Tilray acquired BrewDog's brand, breweries, and 11 bars for £33 million. The deal resulted in 484 redundancies, the closure of 38 pubs, and rendered the holdings of 200,000 crowdfunding investors worthless. Major financial losses include HSBC, which faces a shortfall of approximately £16.8 million, and private equity firm TSG Consumer Partners, which expects a total wipeout of £27 million in secured loan notes. Unsecured creditors, including West Ham United FC and Lord’s Cricket Ground, are expected to receive less than a penny in the pound.