Former Brewdog staff and various creditors of the collapsed Scottish brewer are not expected to receive any funds from the administration process. A report from administrators AlixPartners indicated "insufficient funds" for payouts to those owed money by the brewer's retail arm.
Around £489,000 was owed for staff wages and accrued holiday pay, while HMRC was owed a further £2.4m for unpaid VAT. The administration process also revealed £20m in unpaid bills to hundreds of UK businesses, ranging from coffee shops to legal services, following the takeover by US drinks firm Tilray in March.
AlixPartners attributed the lack of funds for preferential creditors to lower than expected proceeds from asset sales and increased costs during the administration period. These unforeseen costs included security for closed pubs after "unauthorised occupiers" gained access.
Parent company BrewDog PLC is still expected to fully repay its preferential creditor, HMRC, for £3.66m in tax owed. HSBC, Brewdog's largest creditor, is facing an estimated shortfall of £16.8m, though this could be reduced by asset sales in the United States. Private equity backer TSG is set to lose £27.6m, and unsecured creditors are expected to receive less than a penny in the pound.