BrewDog Founder James Watt Launches £10 Million Rescue Bid for Troubled Brewery
James Watt, the co-founder of BrewDog, is preparing to inject £10 million of his personal wealth into a rescue bid aimed at saving the troubled Scottish brewery. This move comes after the company was officially put up for sale, following a prolonged period of financial losses and operational challenges.
Personal Investment and External Backing
Insiders have revealed that Watt, who famously labels himself the 'world's worst boss', is actively assembling financial support from external investors to facilitate a buyback of BrewDog. He stepped down from his role as CEO in May 2024 amidst a series of allegations concerning workplace culture and his personal conduct, though he retains a substantial 22 per cent stake in the business.
According to reports from Sky News, Watt has informed prospective partners of his intention to contribute approximately £10 million towards a potential acquisition. While he is believed to be keen on acquiring BrewDog in its entirety, the precise terms of his proposed deal remain unclear at this stage.
Valuation and Investor Concerns
The current price tag for BrewDog is thought to be significantly lower than its once-mooted valuation of £2 billion. This potential sale has raised concerns among the more than 200,000 individuals who invested in the company through its innovative 'Equity For Punks' scheme.
This unique initiative allowed beer enthusiasts to purchase small shares in the brewery, granting them discounts and various perks. Between 2009 and 2021, BrewDog raised around £75 million through this customer share sale program.
However, a deal orchestrated by Watt could potentially safeguard the stakes held by these everyday investors. The Times has reported that under discussed proposals, approximately one-fifth of the company currently owned by the 'punks' might be carried over into the new ownership structure.
In this scenario, Watt would subsequently hold about half of the firm, with his financial backers controlling the remaining portion.
Sale Process and Industry Challenges
The sale process was initiated last Saturday, with AlixPartners appointed to seek a buyer for the business or its assets. This development occurs against a backdrop of difficult conditions for independent brewers, exemplified by the recent pre-pack administration sale of the group behind Black Sheep Brewery.
Founded in 2007 by James Watt and Martin Dickie, BrewDog quickly earned a reputation for innovation and controversial marketing campaigns. In 2017, TSG Consumer Partners acquired a 21 per cent stake, implying a unicorn valuation of at least $1 billion.
Despite this early success, the company has faced mounting losses in recent years, resulting in the closure of numerous bars and significant workforce reductions. Last year alone, BrewDog reported a loss of £37 million on a turnover of £357 million.
Current Operations and Assets
The company currently operates 72 bars worldwide, including prominent locations in London and Las Vegas, and employs approximately 1,400 people. BrewDog holds a four per cent share of the UK off-trade grocery market by value and produces five of the top eight UK craft beer brands, such as Hazy Jane, Wingman, and Lost.
Its four breweries, located in Ellon, Scotland, as well as in the United States, Australia, and Germany, could potentially be sold separately from the rest of the group, depending on the progress of the AlixPartners-led sale process.
Allegations and Cultural Controversies
Five years ago, BrewDog was rocked by allegations from dozens of former employees who described a 'culture of fear' within the organization. They claimed staff were overworked, instructed to ignore health and safety guidelines, and some were allegedly assaulted or harassed by senior staff members.
The group also asserted that many of BrewDog's famous PR stunts, including sending beer to Vladimir Putin and offering 'pawternity leave', were essentially myths. They placed responsibility for what they called the company's 'rotten culture' squarely on James Watt.
Six months later, the BBC broadcast a documentary featuring several former workers from around the world who made serious allegations about Watt's behaviour. These included claims that he kissed a drunk customer, that female staff received advice on avoiding his unwelcome attention, and that some were deliberately scheduled off when he visited their venues.
One bar worker in Ohio, Katelynn Ising, recalled warning new female staff members: 'Hey, just so you know, James Watt's coming to town. Don't always do your hair and makeup that day, like don't catch his attention.'
Watt denied all allegations of inappropriate behaviour, though he later admitted to going on 'dates' in America and apologized for making anyone 'uncomfortable'. He filed a complaint with broadcast regulator Ofcom about the BBC documentary, but none of his claims were upheld.
Company Statement and Future Prospects
A BrewDog spokesperson stated: 'As with many businesses operating in a challenging economic climate and facing sustained macro headwinds, we regularly review our options with a focus on the long-term strength and sustainability of the company.'
'Following a year of decisive action in 2025, which saw a focus on costs and operating efficiencies, we have appointed AlixPartners to support a structured and competitive process to evaluate the next phase of investment for the business.'
'This is a deliberate and disciplined step with a focus on strengthening the long-term future of the BrewDog brand and its operations. BrewDog remains a global pioneer in craft beer: a world-class consumer brand, the number one independent brewer in the UK and with a highly engaged global community.'
'We believe that this combination will attract substantial interest, though no final decisions have been made. Our breweries, bars and venues continue to operate as normal. We will not comment on any further speculation.'
