Brewdog's unpaid workers to receive nothing after takeover deal
Administrators for the collapsed Scottish brewer Brewdog have confirmed that former staff and creditors will receive no payouts due to insufficient funds. The company, which had over £500m in debt, was sold to Tilray in a rescue deal that left millions in unpaid bills.
Why it matters
The case highlights the severe financial impact of corporate insolvency on small businesses and employees when assets are insufficient to cover liabilities.
Image source, EPA Image caption, Aberdeenshire-based Brewdog had more than £500m of debts when it was sold
Former Brewdog staff and several creditors of the collapsed Scottish beer giant are not expected to receive anything following its takeover.
A report from administrators AlixPartners said there were "insufficient funds" for payouts to those owed money by the brewer's retail 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.
Administrators said about £489,000 was owed for staff wages and accrued holiday pay. A further £2.4m was owed to HMRC for unpaid VAT.
From a £1bn dream to a brutal collapse: How Brewdog hit the rocks
Published 7 March 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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