Former employees of BrewDog Retail Limited who are collectively owed nearly £500,000 in unpaid wages are set to receive no compensation, according to the latest company administration report. The document, lodged with Companies House, reveals that there are insufficient funds remaining to pay preferential creditors, including the workers and HM Revenue & Customs (HMRC).
BrewDog Retail Limited entered administration earlier this year, burdened by debts exceeding £500 million and the closure of 38 bars across the UK. As part of the fallout, 484 staff members faced redundancy, while a US-based firm, Tilray, acquired the brewing business in a deal valued at approximately £33 million. Tilray’s acquisition secured 733 jobs, though BrewDog Retail Limited’s retail arm has remained in administration.
The recent progress report highlights a significant reduction in expected payouts compared to proposals circulated in March, when redundant employees had been informed they might receive dividend payments. However, administrators now cite failed negotiations to transfer pub leases to third-party operators as a key factor in the depletion of available funds. Additionally, the report notes complications caused by unauthorized occupiers accessing some properties, which necessitated coordinated efforts with landlords to evict them. The security measures and legal actions taken, according to the report, contributed to a loss of net estate value.
HMRC remains owed £2.4 million in unpaid tax liabilities, encompassing VAT, PAYE, and National Insurance contributions. The report confirms that there is no prospect of HMRC recovering these amounts during the ongoing administration process.
The current administration period for BrewDog Retail Limited is scheduled to conclude on March 2, 2027. However, administrators have requested an extension of up to one year to allow for the continued management and resolution of the company’s outstanding affairs.
