A popular global beer brand is reportedly facing liquidation, according to The Street.
BrewDog has reportedly brought in restructuring advisers AlixPartners to explore options, which include a possible sale or breakup of the business entirely, following its equity sale to individuals under its “Equity for Punks” program. The program previously offered shares with discounts such as a free birthday beer and other perks, but is now only allowing them to be gifted or purchased directly from an existing shareholder.
“Right now, we don’t have live shares for sale but that’s not to say they aren’t available. You can firstly be gifted shares by someone looking to transfer them or if you have discussed a private sale with someone you are looking to buy shares from you can do so privately,” the company wrote on its website.
Brewdog was reported to have a valuation of £2bn in 2021, but has since faced several hits to its brand image, including allegations of a “toxic” work culture, with co-founder James Watt leaving his role as CEO in 2024, though retaining a stake in ownership. Investors in the “Equity for Punks” program, which saw an estimated 220,000 push, are also reportedly unlikely to see a return on their investments.
“Our experience is that you get very little return on equity after bankruptcy,” said Chris Stuttard, editor of BankruptcyData.com, a clearinghouse for corporate bankruptcy information website, via The Street. “Look at it like this. It was one company going in and becomes a brand-new company when it comes out. And more often than not, the company will decide to cancel the old common stock.”
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