‘Insufficient funds’ to pay creditors’ debts at collapsed BrewDog company

Some creditors of the collapsed beer company BrewDog’s retail arm are not expected to receive anything from its administration.

A report from administrators AlixPartners said there were “insufficient funds” to pay out creditors owed money when the company collapsed.

This includes debts related to unpaid wages and accrued holiday pay of £489,000 in the retail arm of the business.

Workers who lost their jobs when BrewDog’s retail company collapsed were compensated under the redundancy payments scheme, and this sum is owed to the government.

Earlier this year, US drinks firm Tilray snapped up BrewDog’s brand, intellectual property, UK breweries and 11 bars in a rescue deal for about £33 million.

The administration process saw BrewDog shut 36 bars, hitting almost 500 workers, before it was snapped up by new owners.

The takeover deal also rendered the shares of about 200,000 crowdfunding investors to be worthless.

The administrators’ report into Brewdog PLC and its retail arm says around £489,000 is owed in relation to retail employee wages arrears and accrued holiday pay.

A further £2.4m is owed to HMRC for unpaid VAT.

The report says there are now “insufficient funds available” to allow for a distribution to these “preferential creditors”.

This is due to a “reduced level of realisations” for the retail business and increased costs during the administration period.

The report said that those made redundant were provided with information on government support.

Brewdog PLC also owes around £190m to unsecured creditors.

They are expected to receive less than a penny in the pound of what they are owed, according to the report.

Brewdog’s new owners, Tilray, have been approached for comment.