Global beer brand faces bankruptcy liquidation

When you run out of money, you run out of options, and creditors, banks, and the courts get to make decisions that may not be what you hoped would happen.

In most cases, when a company gets liquidated or files bankruptcy, its shareholders are in line behind secured creditors. That means they usually get nothing from any asset sales.

"When an entity seeks protection under the US Bankruptcy Code, existing shareholders face the prospect of a complete loss of their investment," according to LegalClarity.org.

Yes, your stock means you own a share of the company, but that doesn't guarantee much.

"Shares of common stock represent an ownership interest in the company, but this interest is subordinate to all forms of debt," the website added.

That’s bad news for shareholders in BrewDog, a leading global beer brand. While the company is not entering formal insolvency proceedings, it has brought in restructuring advisers AlixPartners to explore strategic options, including a potential sale or breakup of the business.

In such processes, existing equity holders are typically subordinate to lenders and other creditors, meaning shareholders may see little or no return if assets are sold.

BrewDog faces an uncertain future

BrewDog isn't traded on any stock exchange, but it has sold equity to individuals under its "Equity for Punks" program. Owning shares comes with discounts, a free birthday beer, and some other perks.

You can't currently buy shares, but you can be gifted them or buy them in a direct sale 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 shared on its website.

Any benefits of being a shareholder may be dropped should a sale of the brand take place.

“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 told 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 is being sold

"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 Independent reported.

In January, the company shut down its distilling brands in an effort to preserve cash.

"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 News reported.

A sale would likely see the company's roughly 220,000 individual shareholders, who became investors through its 'Equity for Punks' plan, left with little return from their average outlay of about £400, according to Sky News.

More Retail:

• Costco sees major shift in member behavior
• Retail chain shuts all locations as legal changes hit industry
• Lululemon struggles to reverse concerning customer behavior
• T-Mobile launches free offer for customers after major loss

The company shared a statement with The Independent.

“Following a year of decisive action in 2025, which saw a focus on costs and operating efficiencies, we have appointed AlixPartners to support a structured and competitive process to evaluate the next phase of investment for the business," it said.

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 UK, 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: Elvis Juice, Hazy Jane, Dead Pony Club, 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.

Related: Another award-winning beer brand closes down its brewery forever