The Aberdeenshire-based brewery and pub chain was bought out by US FMCG outfit Tilray in a £33 million rescue deal.
BrewDog, which had been experiencing difficulties for some time before it collapsed into administration earlier this year, reportedly racked up more than £500 million in debt before it was sold.
The stark reality of the situation has been revealed in a report by administrators AlixPartners, which said there were “insufficient funds” from the firm’s retail division. The division includes an outstanding VAT bill of £2.4 million.
BrewDog was also unable to pay outstanding staff wages and holiday pay amounting to £489,000. These liabilities were instead paid by the government’s Insolvency Service.
The rescue package from Tilray did not include 38 of BrewDog’s 49 pubs, which are now sitting empty.
The company’s collapse also left a wide range of businesses unpaid, with around £20 million owed to hundreds of firms, including bakeries, coffee shops and laundry services, as well as lawyers, councils and holiday parks.
High-profile creditors also include West Ham United FC, Lord’s Cricket Ground and Manchester University, but AlixPartners said there were insufficient funds after disappointing revenues from asset sales and higher costs during the administration period.
The administrator has also incurred unforeseen costs related to squatters breaking into empty BrewDog pubs.
Unsecured creditors are owed more than £200 million in total, with BrewDog’s main lender HSBC set to lose approximately £17 million of the £31.2 million it was owed. Its Equipment Finance division is also expected to lose around £523,000.
Private equity firm TSG, which had controlled a 22% stake in BrewDog before withdrawing its funding in February, will receive none of the £27.6 million it is owed.
