Auto Amazon Links: No products found. Blocked by captcha.
The craft beer company Brewdog has entered administration, resulting in the closure of dozens of its bars and the loss of hundreds of jobs. The US-based beverage and medical cannabis enterprise Tilray has acquired Brewdog’s UK brewing operations, brand, and 11 pubs for £33 million. This acquisition has saved 733 jobs; however, 484 positions were cut, and 38 bars that were not part of the deal have shut down.
Brewdog, founded in Aberdeenshire in 2007 by James Watt and Martin Dickie, recruited consultancy firm AlixPartners last month after years of failing to turn a profit. The administrators noted strong interest in the company but stated no bids came forward that would keep Brewdog entirely intact. Consequently, the immediate closure of 38 UK bars led to significant redundancies, according to the administrators.
Under the terms of the sale, Tilray will assume control of Brewdog’s brewery in Ellon and its national distribution center, The Hop Hub, in Motherwell. The acquisition also ensures that Brewdog’s 18 franchise bars, both in the UK and abroad, will continue operations. Tilray, which owns multiple craft beer brands in the US, views this purchase as an important chance to expand in UK and global markets. Negotiations remain ongoing regarding Brewdog’s assets situated in the US and Australia. Brewdog’s German branch, including a brewery and bar in Berlin, was excluded from the transaction and will be liquidated.
Throughout its history, Brewdog cultivated a rebellious image within a traditionally conservative brewing industry, and it grew to operate around 100 pubs worldwide along with four breweries. Despite early success, the company endured major financial difficulties in recent years, with accumulated losses of nearly £150 million and mounting debt. Brewdog’s “Equity for Punks” investment scheme, launched in 2009, saw approximately 200,000 small investors raise £75 million to fund the firm’s growth, but none of these equity holders will receive any return from the current deal. In contrast, the US equity firm TSG Consumer Partners, which purchased a 22% stake in 2017 with preference shares, is prioritized in recouping its investment
Read the full article from The BBC here: Read More
Auto Amazon Links: No products found. Blocked by captcha.