Brewdog Founder Acknowledges Mistakes Amid Job Losses
Brewdog co-founder James Watt has issued an apology to staff and investors, admitting to having made "many mistakes" following the sale of the brewer and pub chain, which resulted in hundreds of job losses this week.
The company's brewery and 11 bars were acquired by the US firm Tilray for £33 million after Brewdog entered administration on Monday. However, 38 other pubs were closed, and 484 employees were made redundant.
Reactions from Unions, Staff, and Investors
Unions, staff members, and investors have expressed anger regarding the handling of the business sale.
In a statement posted online, Watt described the week as "incredibly hard" and said he was "heartbroken" for those who lost their jobs and those who had invested in the company's Equity For Punks scheme.
Company Background and Growth
Watt co-founded Brewdog in Aberdeenshire alongside Martin Dickie in 2007.
At its peak, Brewdog operated four breweries and approximately 100 pubs worldwide, with an estimated valuation exceeding $1 billion.
Challenges and Leadership Changes
Despite its success, the company faced years of negative publicity, including staff complaints about workplace culture and allegations of inappropriate behaviour.
Watt stepped down as CEO in 2024, and Dickie left the company just over a year later.
Watt's Reflections on His Leadership
In his LinkedIn statement, Watt admitted he had "no idea what I was really doing" during the early years and acknowledged that, in hindsight, he would have acted differently.
"At times we expanded too fast and diversified too broadly," he wrote.
The millionaire businessman also stated that he did not manage spending effectively at times and failed to respond to some crises in a manner "that was authentic and true to who I am."
"During my 17 years in charge there were highs, lows, successes, failures, huge gambles and many mistakes along the way.
Ultimately, the mistakes hurt far more than the successes console."
Watt expressed regret that he could not save every job or protect every investment made by Equity Punk investors.
"Ultimately, I couldn't. That will stay with me."
He thanked staff and investors, stating:
"I am sorry that I was not able to repay the faith you bestowed in me with the outcome you all deserved."
Watt concluded by affirming his continued affection for the business:
"I still love the business. It will always feel like an intrinsic part of me. I will always be cheering it on from the sidelines, even if the next chapter is now going to be written by others."
Union Criticism Over Redundancy Process
Unions have criticized the manner in which hundreds of Brewdog staff were informed of their redundancies, which occurred during a 15-minute conference call led by chief executive James Taylor.
Bryan Simpson, hospitality organiser with the Unite union, said the workforce received only 25 minutes' notice and were not permitted to ask questions.
"I've been representing bar workers for over a decade and it is the worst mass redundancy I have dealt with, including during the pandemic," he told BBC Scotland News.
Financial Details and Impact on Investors
AlixPartners, appointed as Brewdog's administrators, announced on Monday that equity holders, including those who invested in the Equity for Punks scheme, would receive no return from the sale.
The Equity for Punks fundraising initiative, launched in 2009, reportedly raised £75 million before closing to new investors in 2021.
In 2017, US equity firm TSG Consumer Partners acquired a 22% stake in Brewdog and was granted "preference shares" over Equity for Punks shareholders, entitling TSG to recoup its investment first in the event of a sale.
In an email to investors on Monday, the new owners expressed a desire for Equity for Punks participants to remain "ambassadors for the brand."
Investor Richard Fisher stated he had written off his £12,000 stake and expressed frustration over the situation.
"There's nothing for us. It's being sold at a knock-down price.
But I never thought there was going to be anything left over for the Equity for Punks anyway," he said.
