HSBC is facing losses of more than £17m as a result of the administration of Brewdog, the craft beer company acquired by a US cannabis group earlier this year. Administrators stated on Thursday that the bank is expected to experience a £16.8m shortfall from its debts to the brewer, with its Equipment Finance arm set to lose an additional £523,486.
Brewdog, co-founded by James Watt, was sold out of administration to Tilray Brands, an American cannabis and craft beer firm, for £30m in March. Tilray acquired several of Brewdog’s bars and brewing facilities, while the remaining operations entered administration.
AlixPartners, Brewdog’s administrators, confirmed that HSBC, a secured creditor, was owed £31.2m by Brewdog but will only recoup £14.5m of this debt. HSBC's Equipment Finance and Invoice Finance arms were also owed £12.3m and £16.2m respectively. HSBC Equipment Finance will recover £11.8m, and Invoice Finance will receive all of its debt back.
The administration also means former Brewdog staff will lose £489,000 in unpaid wages and holiday pay. Additionally, HMRC, the UK’s tax authority, will miss out on £2.4m in unpaid VAT, employee national insurance contributions, and PAYE deductions.