BrewDog to close four bars in region after pre-pack deal

Once the darling of UK craft brewing, the £33m sale of the firm to US buyer Tilray has led to 38 confirmed venue closures, with Manchester’s Peter Street one of just 11 locations to survive.

Administrators from AlixPartners were appointed yesterday to BrewDog PLC, BrewDog International Ltd., BrewDog Retail Ltd. and Draft House Holding Ltd – collectively, BrewDog –before near-instantly announcing a deal with Tilray Brands UK, a business wholly owned by Nasdaq-quoted Tilray Brands Inc.

AlixPartners had been appointed in mid-February to lead a strategic review and sales process. No offer was made that would have saved the troubled business as a whole, the firm said, meaning 484 jobs will be lost.

The locations to close include bars in Carlisle’s Botchergate and Liverpool’s Colquitt Street, along with two Manchester locations. These are the Doghouse bar and hotel on Fountain Street – an 18-bed operation at Bruntwood’s Bloc opened in 2021 – and the cavernous Outpost bar on Oxford Road, which includes a microbrewery.

Tilray’s acquisition sees it acquire BrewDog’s brewery in Ellon, Aberdeenshire, and its national distribution centre in Motherwell, along with its extensive brand portfolio, as well as 11 venues, five of which are in London.

In the early years following its 2007 foundation, self-styled punk brewer BrewDog gained a wide following, and raised funds from fans through the Equity for Punks scheme. AlixPartners confirmed there will be no return to any equity holders following the sale.

BrewDog’s 18 franchise bars in the UK and internationally continue to operate.

Clare Kennedy, a partner & managing director at AlixPartners said: “As one would expect over the past two weeks, we have received significant interest in the BrewDog business from prospective buyers across both the trade and investment communities. In Tilray, we have secured a purchaser with a passion for craft brewing who will be an excellent custodian and sponsor of the business in the months and years ahead.

“Having done so, our priority now is to support, to the fullest extent possible, those people whose roles have been made redundant, and we would ask operators within the UK leisure sector who are in a position to assist to contact us at any time.”

Tilray is known as a major exporter of medicinal cannabis, and has also built up a suite of US craft brewing brands. It now finds itself in control of a well established brand, with its cans a fixture on UK supermarket shelves, but one with work to do to restore its reputation in the eyes of many former customers.

Co-founder James Watt stepped down as chief executive in 2024, after a series of controversies. Watt, who along with co-founder Martin Dickie sold off around 20% of the then-high flying business in 2017, was reported to be involved with one of the bid teams beaten to the punch by Tilray.

Irwin D Simon, chairman and chief executive of Tilray Brands, said: “BrewDog is one of the most iconic, mission-driven craft beer brands in the UK. It helped redefine modern craft beer through bold innovation, fearless creativity and an unwavering commitment to great beer. What makes BrewDog truly special has always been its brewers, its brewpubs and its passionate community of beer fans.

“As we begin a new chapter for this great brand, our priority is to refocus BrewDog on the craft beer excellence that made it beloved in the first place and strategically invest to return the operations to profitable growth. BrewDog’s future is bright, and we are committed to ensuring the brand continues to lead and inspire the global craft beer movement.”

Simon and his operation are no strangers to their new patch. He said: “My team and I have significant experience in the UK market where we previously built a $1.5bn consumer packaged goods business at my prior company with beloved brands, including Ella’s Kitchen, Hartleys, Tilda, New Covent Garden and Linda McCartney.

“With the BrewDog acquisition, our total global beverage platform is expected to grow to circa $500m in annual revenue, creating one of the largest diversified craft beverage platforms globally.”