BrewDog has announced the closure of 38 bars, resulting in 484 job losses, following a £33 million rescue deal with US firm Tilray Brands. The Scottish craft brewer, known for beers such as Punk IPA and Elvis Juice, entered administration on Monday, leaving crowdfund investors empty-handed.
Tilray, which produces medicinal cannabis and craft beer in the US, acquired BrewDog's global brand, intellectual property, UK brewing operations, and 11 pub venues across the UK and Ireland. The deal preserves 733 jobs, with employees transferring to Tilray, but most of BrewDog's bars will shut.
BrewDog's 18 franchise bars in the UK and internationally will continue to operate. The acquisition includes the Ellon brewery in Aberdeenshire and The Hop Hub distribution centre in Motherwell, Lanarkshire. Tilray is also negotiating to buy BrewDog assets in the US and Australia.
Clare Kennedy of AlixPartners, the administrators, said: 'In Tilray, we have secured a purchaser with a passion for craft brewing who will be an excellent custodian.' Tilray CEO Irwin D Simon added: 'BrewDog is one of the most iconic craft beer brands in the UK... its future is bright.'
Harriet Cross, MP for Gordon and Buchan, called the job losses 'disastrous' and said: 'My immediate thoughts go to the hardworking staff who have been impacted through no fault of their own.' She noted that Tilray has no plans to relocate production from Scotland.
