DLA Piper advised BrewDog on entering administration and the sale of parts of its UK business, with Proskauer acting for the buyer.
The deal will see 38 BrewDog bars close and 484 jobs lost, while more than 200,000 “Equity for Punks” investors are wiped out.
DLA Piper and Proskauer have advised on the administration and break-up sale of BrewDog, as the once high-flying craft beer brand restructures following years of losses and mounting debts.
DLA Piper acted for BrewDog on entering administration and the sale of key parts of its business, while Proskauer advised US beverage group Tilray Brands on the £33 million deal to acquire parts of the company’s UK operations.
The deal will see Tilray take control of BrewDog’s brands, UK brewing operations and a number of its pubs. But the restructuring comes at a heavy cost - 38 sites will close immediately, leading to 484 job losses.
Craft beer star hits reality
Founded in 2007 by James Watt and Martin Dickie, BrewDog quickly grew into one of the UK’s most recognisable craft beer brands, with products including Punk IPA, Hazy Jane, Lost Lager and Wingman.
At its peak the company was hailed as a standout British craft beer success story, building a global network of bars and attracting a loyal following through its unconventional marketing and the widely publicised “Equity for Punks” crowdfunding scheme.
More than 200,000 retail investors poured over £75 million into the scheme over the years, helping fuel BrewDog’s rapid expansion. But those shareholders will now be wiped out as part of the restructuring.
The company has struggled financially in recent years. For 2024, it reported a £37 million loss on revenues of £357 million.
Private equity firm TSG Consumer Partners took a 22% stake in the business in 2017 in a deal that valued BrewDog at more than $1 billion. Co-founders Watt and Dickie reportedly cashed out shares worth more than £100 million between them.
Advising
DLA Piper advised BrewDog on the administration and the divestment of parts of its business and assets. The firm’s team was led by UK head of restructuring Rob Russell and partner Sarah Letson, supported by lawyers across the UK, US, Spain, Ireland, Sweden, Australia, Germany and Belgium.
The firm will also support restructuring specialist AlixPartners, which has been advising BrewDog and has been appointed as administrator.
Proskauer acted for Tilray Brands on the acquisition.
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