James Watt, the co-founder of Brewdog, has launched a bid to repurchase the craft beer company just months after it was sold to US firm Tilray. The move comes after Brewdog collapsed with debts exceeding £500 million, leading to hundreds of job losses and leaving about 20,000 small investors with worthless shares.
The buyback proposal
In an email to investors who had signed up to his new beer brand, Second Best, Watt revealed he had made a formal offer to buy back Brewdog. He stated that if successful, everyone who registered for Second Best would receive the same stake in Brewdog they once held, at no cost. Watt previously tried to buy the company after its collapse but lost out to Tilray.
Background and controversy
Watt co-founded Brewdog with Martin Dickie in Aberdeenshire nearly 20 years ago. At its peak, the firm operated four breweries and about 100 pubs worldwide, with a valuation exceeding $1 billion. However, rapid diversification and mounting debt led to its downfall. Watt stepped down as CEO in 2024, and Dickie left the company last year. Both had sold shares to US private equity fund TSG in 2017, netting £50 million each.
Brewdog faced repeated criticism over its treatment of investors and staff, as well as a 2022 BBC Disclosure investigation that alleged inappropriate behaviour by Watt towards female staff and fabricated marketing stories. Watt denied the allegations and threatened to sue the BBC. In 2024, the company also faced backlash for switching from the real living wage to the lower legal minimum wage for new hires.
Investor skepticism
After leaving Brewdog, Watt launched Second Best, offering nearly 20% of shares to people who lost money in the Equity for Punks scheme. However, former investors expressed skepticism about those plans. Watt recently apologized to staff and investors for the company's mismanagement, admitting it tried to expand too quickly. Tilray and Second Best have been asked for comment on the bid.