The 15-minute call where hundreds of 'devastated' Brewdog staff were laid off

Unions have expressed their anger at the way hundreds of Brewdog staff were told they had lost their jobs during a 15-minute conference call.

Parts of the Aberdeenshire-based independent brewer and pub chain were bought by beverage and cannabis firm Tilray for £33m on Monday after Brewdog went into administration.

But 484 staff were made redundant as the company announced the closure of dozens of bars which were not included in the rescue deal.

Bryan Simpson, hospitality organiser with the Unite union, described the events as "morally repugnant" and said staff were "devastated".

He said many of the union's members were worried about speaking out publicly.

"Brewdog had not exactly covered itself in glory in recent years," he said.

"They abandoned the living wage and closed bars last year.

"Yesterday, staff were given 25 minutes' notice of a 15-minute call. Cameras were turned off, there was no chance to ask questions."

Simpson says staff were also told they would be given forms to apply for their pay through the insolvency service, which meant it would be "paid by the public purse".

"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 added.

Staff were told of the closures and cuts by Brewdog chief executive James Taylor on Monday.

The announcement came after Tilray bought the company's UK brewing operations, brand, and 11 pubs. The deal saw 733 staff being transferred over to the new owners.

But 38 bars across the UK which were not included in the sale immediately closed with the loss of 484 jobs.

Brewdog's administrators, AlixPartners, also confirmed that equity holders - including those who invested in the firm's Equity for Punks scheme - would see no return from the deal.

That fundraising scheme, launched in 2009, attracted some 200,000 investors.

A stake in the company came with discounts and perks on Brewdog goods and services.

They typically spent about £500 on shares costing £20 to £30 each, although others invested larger sums.

Before it closed to new investors in 2021, Equity for Punks is said to have raised £75m.

US equity firm TSG Consumer Partners acquired a 22% stake in Brewdog in 2017, and was given "preference shares" over Equity for Punks shareholders, meaning TSG would get its money back first in the event of a sale.

In an email sent to Equity for Punks investors on Monday, which has been seen by the BBC, the "Brewdog Team" thanked the shareholders for their "belief, passion and investment".

It said: "While the structure of the business changes, our gratitude does not. We would love to continue our relationship with this incredible community - to treat you as ambassadors for the brand and to honour the spirit of Equity for Punks."

The new owners said they planned to continue "key benefits", such as bar and online discounts, and would update investors as soon as possible.

Equity for Punks investor Richard Fisher said he had written off his £12,000 stake in Brewdog and was left frustrated by what has happened.

"There's nothing for us," he said.

"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."

Fisher said the company had been "sold for parts" without any chance for investors to get their money out.

A number of other people who invested in Equity for Punks have also contacted the BBC to express their anger.

Unite's Bryan Simpson said the loss of equity also affected Brewdog staff.

"A lot of these shareholders are workers with the company," he said.

"A lot of them were investors and a lot of them put their life savings into a company where they were promised a pay back and they are now going to get pennies on the pound or probably nothing."

Nick Stockley, a lawyer specialising in litigation and dispute resolution at Mayo Wynne Baxter, said there was little chance that any of the investors would get back money.

He said: "The Brewdog brand retains some value, hence why the franchise outlets will remain, but the brand is worth significantly less than a few years ago.

"Brewdog will probably follow other recent casualties in the hospitality industry and further bar closures and job losses will follow. Suppliers will, at best, get paid a small fraction of what they are owed.

"This will inevitably create further damage up and down the supply chain. It appears that Brewdog grew too big too fast and tried to go beyond its tried and tested products."

He said the company had been struggling for some time and may have tried to restructure too late.

Brewdog was founded by friends James Watt and Martin Dickie in 2007, and grew to own four breweries and about 100 pubs around the globe.

Once said to be worth more than $1bn, the company suffered years of bad headlines, with staff complaints about workplace culture and allegations of inappropriate behaviour.

Watt stood down as CEO in 2024 and Dickie left the company just over a year later.

About the same time, Brewdog announced the closure of 10 pubs across the UK. The news that it was looking for a buyer emerged last month.