If you run out of cash, you run out of choices, and collectors, banks, and the courts get to make choices that is probably not what you hoped would occur.
Usually, when an organization will get liquidated or recordsdata chapter, its shareholders are in line behind secured collectors. Meaning they often get nothing from any asset gross sales.
“When an entity seeks protection under the US Bankruptcy Code, existing shareholders face the prospect of a complete loss of their investment,” in keeping with LegalClarity.org.
Sure, your inventory means you personal a share of the corporate, however that does not assure a lot.
“Shares of common stock represent an ownership interest in the company, but this interest is subordinate to all forms of debt,” the web site added.
That’s dangerous information for shareholders in BrewDog, a number one international beer model. Whereas the corporate just isn’t coming into formal insolvency proceedings, it has introduced in restructuring advisers AlixPartners to discover strategic choices, together with a possible sale or breakup of the enterprise.
In such processes, current fairness holders are usually subordinate to lenders and different collectors, which means shareholders might even see little or no return if belongings are bought.
BrewDog faces an unsure future
BrewDog is not traded on any inventory change, however it has bought fairness to people underneath its “Equity for Punks” program. Proudly owning shares comes with reductions, a free birthday beer, and another perks.
You may’t at present purchase shares, however you may be gifted them or purchase them in a direct sale from an current 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 corporate shared on its web site.
Any advantages of being a shareholder could also be dropped, ought to a sale of the model happen.
“Our experience is that you get very little return on equity after bankruptcy,” stated Chris Stuttard, editor of BankruptcyData.com, a clearinghouse for company chapter data instructed TheStreet.
“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.”
BrewDog makes quite a few beers standard in a number of international locations.
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BrewDog is being bought
“Beermaker BrewDog could be broken up after consultants were called in to help look for new investors. The Scotland-based brewer, which makes craft beer such as Punk IPA and Elvis Juice, has appointed consultants AlixPartners to oversee a sale process,” The Unbiased reported.
In January, the corporate shut down its distilling manufacturers in an effort to protect money.
“Sources said that AlixPartners had begun sounding out prospective suitors in the last few days, with a quickfire deadline for indicative offers understood to have been set,” Sky Information reported.
A sale would probably see the corporate’s roughly 220,000 particular person shareholders, who grew to become buyers by way of its ‘Fairness for Punks’ plan, left with little return from their common outlay of about £400, in keeping with Sky Information.
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The corporate shared a press release with The Unbiased.
“Following a 12 months of decisive motion in 2025, which noticed a give attention to prices and working efficiencies, we now have appointed AlixPartners to help a structured and aggressive course of to judge the subsequent part of funding for the enterprise,” it said.
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BrewDog history
- Founded in 2007: BrewDog was founded in Fraserburgh, Scotland, by James Watt and Martin Dickie to challenge mass-market beer with bold craft offerings, according to the company’s website.
- Flagship beer: Punk IPA became BrewDog’s breakout product and one of the best-selling craft beers in the U.K., driving international growth, reported the BBC.
- Equity for Punks crowdfunding: Launched in 2009, the program allowed fans to buy shares and helped fund rapid expansion, according to the Financial Times.
- Other notable beers: Included Elvis Juice, Hazy Jane, Dead Pony Club, and Jet Black Heart, added the company.
- Global expansion: By the late 2010s, BrewDog operated breweries in Scotland, the U.S., Germany, and Australia, with a large international bar network.
- Recent challenges: BrewDog has closed underperforming bars and faced scrutiny over workplace culture. Co-founder James Watt stepped down as CEO in 2024 as the company shifted toward profitability, according to the BBC.
- Current situation: The company has closed its distillery operations and has hired Alix Partners for a quick sale/liquidation of the brand, according to The Independent.
Update: Legal analyst shares BrewDog next steps
James Howell, Managing Director at corporate law specialists Rubric Law, shared his insights into what BrewDog’s sale signals from a corporate and legal perspective in an email to TheStreet.
“What’s happening at BrewDog is a clear example of what unfolds when performance hasn’t met expectations. After several years of losses and continued cost pressure, the decision to appoint advisers and run a competitive process is about value discovery and deal certainty (not just finding a buyer). In my experience, this is exactly when boards move from informal discussions to a disciplined M&A campaign that can properly test the market,” he wrote.
It is an organized course of designed to maximise worth.
“In observe, advisers will construction bidder rounds, management data move, and drive comparable provides. That framework issues much more when profitability is underneath scrutiny, as a result of it protects worth and prevents opportunistic pricing from early bidders,” he added.
Price, and whether a buyer emerges, depends upon the fundamentals.
“Looking at BrewDog specifically, the triggers here appear investor-led and performance-driven rather than growth-driven. That changes the dynamic (buyers will focus heavily on margin resilience, liabilities, lease exposure, and operational efficiency, not just brand strength). I’ve seen plenty of deals where brand alone cannot bridge gaps in fundamentals,” he shared.
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