The 15-minute call where hundreds of 'devastated' Brewdog staff were made redundant

Unions have voiced their strong disapproval regarding the manner in which hundreds of Brewdog employees were informed of their job losses—through a brief 15-minute conference call. The Aberdeenshire-originated independent brewery and pub chain entered administration and was subsequently partly acquired by Tilray, a beverage and cannabis company, for £33 million on Monday. Despite this sale, 484 individuals were made redundant as a result of the closure of numerous bars excluded from the acquisition deal.

Bryan Simpson, hospitality organiser for the Unite union, condemned the approach as “morally repugnant” and highlighted the deep distress experienced by staff members. Many union affiliates expressed concern over publicly voicing their thoughts. Simpson pointed out that Brewdog had faced criticism in recent years for abandoning the living wage and shutting down bars. He elaborated on how the redundancy notification was handled: staff were given only 25 minutes’ notice before the call, with cameras turned off and no opportunity provided to ask questions. Employees were also informed they would need to apply for their outstanding wages through the Insolvency Service, signaling that payouts would be covered by public funds. Simpson described this as the worst mass redundancy he had encountered in over ten years working in hospitality, including during the pandemic.

The closures and redundancies were announced by Brewdog’s chief executive, James Taylor. Tilray’s purchase included the UK brewing operations, the Brewdog brand, and 11 pubs, transferring 733 employees to the new owners. However, 38 bars around the UK that were not part of the sale closed immediately, resulting in job losses for 484 staff. One former employee, speaking anonymously, disclosed that overtime wages for salaried staff and accrued holiday pay had not been settled, and those affected have been directed to coordinate with the appointed administrators, AlixPartners, for any further claims or retrieval of personal belongings. Confidentiality restrictions were also reportedly imposed by these administrators.

Investors in Brewdog’s Equity for Punks scheme, launched in 2009 and which attracted around 200,000 shareholders, have been informed that they will receive no return from the deal. This fundraising effort raised approximately £75 million by the time it closed to investors in 2021, offering buyers benefits such as product discounts and other perks. A US equity firm, TSG Consumer Partners, held a 22% stake since 2017 and was granted preference shares, ensuring it would be prioritized for repayment in a sale. In an email to these investors, Brewdog expressed gratitude for their support and indicated a desire to maintain community ties by preserving some benefits, including discounts. Nonetheless, Equity for Punks investor Richard Fisher, who invested £12,000, said he had written off his shares and lamented that the company was sold “for parts” without providing shareholders an opportunity to recoup their investments.

Lawyer Nick Stockley, who specializes in litigation, noted there was little likelihood that investors would recover their funds. He remarked that although the Brewdog brand retains value—enough to sustain franchise locations—it has significantly declined in worth compared to prior years. Stockley predicted further closures and job losses akin to other recent failures in the hospitality sector, with suppliers receiving only partial payments, thereby affecting the supply chain. He suggested Brewdog likely expanded too rapidly and attempted to diversify beyond its core successful products, potentially restructuring too late. Founded in 2007 by James Watt and Martin Dickie, Brewdog grew into a global operation with four breweries and around 100 pubs. Watt stepped down as CEO in 2024, and Dickie departed just over a year later. Around the same period, Brewdog announced the closure of ten UK pubs and recently revealed it was seeking a buyer

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