Brewdog: HSBC could seize brewery if no buyer found
Brewdog’s sprawling Scottish brewing estate could be seized by HSBC if the craft beer firm fails to find a buyer to steady its finances.
Brewdog has agreed for its debts to be secured against its brewery in Ellon, Aberdeenshire, meaning it could lose its huge brewing estate if it cannot pay up.
Co-founder James Watt is preparing to commit £10m of his own money into a take-back bid for the firm, which was put up for sale earlier this month.
But Brewdog could lose its main brewery, which it claims is “one of the most technologically advanced in the world,” if it cannot find a buyer.
Companies House filings in recent days show HSBC has placed the Balmacassie Commercial Park estate, which houses Brewdog’s brewery HQ, as security against the beer firm’s debts.
Watt could return
Watt is assembling financial backing from external investors to form a rescue bid, having stepped down as Brewdog’s chief executive in 2024, according to Sky News.
News of the dramatic return came just hours before suitors were asked to table second-round bids for the brewer, after first-round offers were made last week.
A number of multinational brewers are expected to be in the mix to buy the brewery assets and Brewdog brands, including Punk IPA and Elvis juice.
The Aberdeen entrepreneur, who founded the company in 2007, is said to be keen to acquire the group in its entirety, although the shape of a deal reportedly remains unclear this weekend.
Hangover from ‘punk equity’ model
The brewing chain, which built its image on anti-establishment ideals, offered cheap shares to everyday consumers, in exchange for cheap pints and the opportunity to take part in a start-up success story.
This “equity for punks” model allowed Brewdog to scale rapidly, raising £75m across seven investment grounds.
But some shareholders are concerned that private equity firm TSG could take the lion’s share of an eventual sale, due to a compound return agreement, leaving these “punk” investors with nothing.
Adrian Stalham, chief change officer at consultants Sullivan & Stanley, told City PM the “punk equity” model was not enough to ensure Brewdog’s permanent health.
He said: “Crowdfunded investors helped fuel its growth, buying into the brand’s original punk, upstart ethos as much as the financial upside, but they sit behind private equity in the queue when it comes to who gets paid in a sale.
Ross Brown, a professor at the University of St Andrews’ school of management, told City PM: “Once a brand famous for edgy, zany beers and off-the-wall products it now very much mirrors the bland and corporate incumbents it was meant to challenge.”
The potential buyers circling the beer firm are said to include private equity giants as well as big European beer brands.
While Brewdog has said it would prefer to be bought in its entirety, advisory firm AlixPartners are said to be considering selling the firm’s three assets separately: its brand, its chain of bars and its brewing estate.
Brewdog said: “As with many businesses operating in a challenging economic climate and facing sustained macro headwinds, we regularly review our options with a focus on the long-term strength and sustainability of the company.
“Following a year of decisive action in 2025, which saw a focus on costs and operating efficiencies, we have appointed AlixPartners to support a structured and competitive process to evaluate the next phase of investment for the business.
The brewer called the decision a “deliberate and disciplined step” focusing on strengthening the group’s brand and operations, believing it “will attract substantial interest”.
Brewdog and HSBC were contacted for further comment.