HSBC to lose £17m in Brewdog collapse
HSBC is set to lose out on more than £17m as part of the administration of Brewdog, the craft beer firm which was sold to a US cannabis group earlier this year.
The bank is set to suffer a shortfall of £16.8m from its debts to the collapsed brewer while its Equipment Finance arm is set to lose out on a further £523,486, administrators said on Thursday.
Brewdog, which was co-founded by Scottish entrepreneur James Watt, was sold out of administration to Tilray Brands, an American cannabis and craft beer firm, for £30m in March.
Tilray snapped up a number of Brewdog’s bars and brewing facilities but the rest of its operations fell into administration.
AlixPartners, Brewdog’s administrators, said that HSBC, which was a secured creditor for Brewdog, was owed £31.2m by the beer firm. It will recoup only £14.5m of this debt, the administrators said.
Its Equipment Finance and Invoice Finance arms were also owed £12.3m and £16.2m respectively. HSBC Equipment Finance will get back £11.8m of this debt, and Invoice Finance will be returned all of its debt, AlixPartners said.
Ex-staff lose out on wages and Chancellor misses tax haul
Brewdog’s administration also means that its former staff are set to lose out on £489,000 in unpaid wages and holiday pay, the documents have revealed.
HMRC, the UK’s tax authority, will lose out on £2.4m in unpaid VAT, employee national insurance contributions and PAYE deductions, the administrators said.
Brewdog kickstarted the UK’s craft beer craze when it was founded by Watt and Martin Dickie, his school friend, in 2007.
The brewer and bar operator surged to fame with the help of its “equity punk” investors, who bought small stakes in the group in exchange for beer-related perks.
Brewdog’s sale to Tilray marked the end of a significant downfall for the brewer, which had once commanded a £1bn valuation.
The firm’s “equity punk” investors were left without a return from its sale, and Watt has since sought to regain the confidence of these shareholders by offering them free stakes in his recent ventures.
The sale of Brewdog left 484 of its employees without work, with Watt taking to social media to say he was “heartbroken” that the deal could not protect these staff.
Brewdog declined to comment. HSBC did not respond to a request for comment.