Scottish craft beer company Brewdog is preparing to announce the sale of its business early next week, according to an email from chief executive James Taylor to staff. The firm will liquidate its German operations, excluding them from the sale, while bars continue to operate normally this weekend. Investors express concerns over potential losses from the crowdfunding scheme Equity for Punks.
Brewdog, founded in 2007 by James Watt and Martin Dickie in Aberdeenshire, Scotland, has faced financial challenges in recent years. The company, which operates breweries in the UK, US, Australia, and Germany, along with around 60 pubs in the UK and more than 100 bars globally, reported pre-tax losses of £59m in 2023 and £36.6m in 2024. These figures include one-off impairment costs from historic acquisitions and restructuring. Earlier this month, Brewdog appointed consultants AlixPartners to manage a formal sale process following five consecutive years of losses.
In an email to staff, chief executive James Taylor described the decision to liquidate the German arm—which includes a brewery, taproom, and bars in Berlin Mitte, DogTap Berlin, and St Pauli—as a "very difficult decision." He apologised "for the uncertainty this creates" and noted a "great deal of interest" from potential buyers. The German operations will not be part of the sale, and second-round offers are being sought for the firm and brands like Punk IPA and Elvis Juice.
To facilitate a smooth transition, Brewdog will temporarily suspend online sales and e-commerce trading. Bars will trade as normal over the weekend, with a company-wide "all hands" meeting planned early next week for a full update. The company employs around 1,400 people.
Investors in the Equity for Punks scheme, which raised £75m from about 200,000 participants since 2009, worry their shares may become worthless. Unlike these ordinary shareholders, who typically invested around £500 in shares costing £20-30 each, US firm TSG Consumer Partners holds 22% preference shares acquired in 2017, entitling them to priority repayment in a sale.
Recent challenges include job cuts announced in October last year after a £37m loss, the closure of 10 UK bars in July 2025 including the flagship Aberdeen venue, and halting production of gin and vodka at the Ellon distillery last month. Watt stepped down as CEO in March 2024 to become "captain and co-founder," while Dickie left in August 2025 for personal reasons. In 2024, the firm faced backlash for paying new staff the legal minimum wage instead of the real living wage. A BBC documentary highlighted allegations about Watt's behaviour, but an Ofcom complaint was rejected. Brewdog declined to comment.
