James Watt, co-founder of BrewDog, has apologised to over 200,000 small investors who lost their money after the company was sold for just £33m. The sale to US cannabis and drinks firm Tilray Brands left investors who had contributed £75m through crowdfunding rounds with no return.
In a LinkedIn post, Watt admitted to 'many mistakes' during his 17-year tenure. He expressed regret that 484 staff lost their jobs, as Tilray only purchased 11 of BrewDog's bars, forcing the closure of 38 others. 'Ultimately, the mistakes hurt far more than the successes console,' he wrote.
Small investors criticised Watt for prioritising institutional investors. Fraser Campbell noted that Watt had 'walked away with £50m from the TSG deal' while crowdfunders got nothing. John Allison asked if Watt was 'heartbroken' over giving preference to institutional investors.
Others questioned Watt's self-styled 'punk' image. Cathal Morrow called it 'rather insulting' given the outcome. However, some investors like Fraser Neil expressed no regret, saying they invested for love of the brand, not financial gain.
The sale, a fraction of BrewDog's once-targeted £2bn valuation, followed five years of losses and controversies over company culture. Unite the union criticised the 'national disgrace' of the pre-pack administration that cost nearly 500 jobs.
