A well-known brewery and pub chain has revealed plans to shut down numerous bars, resulting in the loss of hundreds of jobs. BrewDog has announced the closure of 38 locations across the UK, following a rescue deal by a US company. Despite Tilray Brands acquiring BrewDog in a £33 million agreement, 484 positions will be eliminated. The acquisition included assets such as the global brand, intellectual property, UK brewing operation, and 11 pub venues in the UK and Ireland. Among the affected sites are nine bars in London, nine in Scotland, and the DogHouse hotel in Manchester.

In a recent development, BrewDog sought the assistance of consultants AlixPartners after facing profitability challenges. Administrators confirmed the closure of most BrewDog bars, while the company’s 18 franchise bars will remain operational. Tilray Brands will retain 733 jobs in the UK, with employees transitioning to the new ownership. The deal involves the transfer of control over BrewDog facilities, including the brewery in Aberdeenshire and a distribution center in Lanarkshire.

BrewDog’s CEO, James Taylor, informed staff via email about the imminent closure of the pubs, emphasizing the need for direct communication with employees. The company faced uncertainty that prompted discussions for a potential takeover, leaving questions from investors involved in the “equity for punks” scheme. The sale to Tilray means equity holders will not receive any returns from the deal, as confirmed by the administrators.

Clare Kennedy from AlixPartners expressed satisfaction with securing a buyer in Tilray, highlighting the company’s commitment to craft brewing. Tilray is also in talks to acquire BrewDog assets in the US and Australia. Irwin D Simon, Tilray’s chairman, praised BrewDog’s legacy in the craft beer industry and outlined plans to refocus on beer excellence and profitable growth.

The union Unite, representing hospitality workers, condemned the closures, vowing to seek justice for its members. Sharon Graham, the union’s general secretary, criticized the treatment of BrewDog workers, stating they deserved respect and were not disposable assets.