HSBC faces over £17 million loss after Brewdog enters administration

HSBC is set to lose more than £17 million as a result of Brewdog’s recent administration, with a shortfall of £16.8 million on its secured claim and a further £523,486 loss for its Equipment Finance division. Brewdog, the Scottish craft-beer pioneer co-founded by James Watt and Martin Dickie, was sold to US cannabis group Tilray Brands for £30 million in March, but the sale excluded many of its operations, which subsequently entered administration.

Administrators AlixPartners reported that HSBC is owed £31.2 million but will only recover £14.5 million, while its Invoice Finance arm will be fully repaid and Equipment Finance will receive £11.8 million. The collapse also leaves former staff with £489,000 in unpaid wages and holiday pay, and HMRC will lose £2.4 million in VAT and other tax contributions. Brewdog’s downfall marks the end of a company that once drove the UK’s craft-beer boom and had a £1 billion valuation.