Hundreds of staff lost jobs after BrewDog entered administration, and dozens of bars closed

Hundreds of BrewDog employees were told they had lost their jobs during a short conference call after the craft beer company entered administration.

Unions have criticised the way the announcement was handled, describing the process as devastating for workers who suddenly found themselves unemployed.

Parts of the Aberdeenshire-based brewer and pub chain were sold for £33m to beverage and cannabis company Tilray. The sale was announced on Monday after BrewDog entered administration.

However, the rescue deal did not include dozens of bars across the UK. As a result, 38 BrewDog venues closed immediately, and 484 members of staff were made redundant.

Bryan Simpson, hospitality organiser with the Unite union, strongly criticised the process used to inform employees of the job losses.

He said staff were given just 25 minutes’ notice before a short conference call where the redundancies were announced. The call lasted around 15 minutes, and workers were unable to ask questions because cameras were turned off.

Simpson described the situation as “morally repugnant” and said the staff affected were “devastated”.

He added that many of the union’s members felt unable to speak publicly about the situation.

Simpson said it was the worst mass redundancy process he had experienced in more than a decade representing hospitality workers, including during the Covid-19 pandemic.

Staff were told about the closures and job losses by BrewDog chief executive James Taylor during the meeting.

While the administration process led to significant job losses, a portion of the company’s workforce will continue under new ownership.

Tilray purchased BrewDog’s UK brewing operations, its brand and 11 pubs as part of the deal. In total, 733 staff members will transfer to the new owners and continue working under the Tilray-controlled business.

But the 38 bars excluded from the deal shut immediately, leaving hundreds of workers without jobs.

One employee who was made redundant during the call contacted the BBC to describe the experience.

He said staff were informed that administrators would handle matters relating to unpaid wages and other financial issues.

According to the worker, employees had not been paid for work completed over the weekend. He also claimed salaried staff had not received overtime payments for February and that accrued holiday pay had been written off.

The employee said staff had been told they must deal with administrators at AlixPartners if they wanted to return to collect personal belongings from their workplaces.

He also said they were instructed not to discuss their concerns or experiences with anyone outside of the administrators.

BrewDog has been approached for comment regarding the claims.

The administrators also confirmed that investors who bought shares through the company’s Equity for Punks scheme would not receive any return from the sale.

The fundraising programme launched in 2009 and attracted about 200,000 investors.

Participants typically purchased shares priced between £20 and £30 each, often investing around £500 in total, though some invested larger amounts.

The scheme offered investors perks, including discounts and benefits connected to BrewDog products and venues.

Before it closed to new investors in 2021, Equity for Punks had reportedly raised about £75m.

Despite the sale of BrewDog’s core brewing operations and a small number of pubs, the closure of dozens of venues and the sudden loss of hundreds of jobs have triggered strong criticism from unions and raised questions about how the redundancies were handled.