James Watt launched a bid on Wednesday to buy back Brewdog, the craft beer firm he co-founded two decades ago, just months after it collapsed under £500m of debt and was sold to a US rival.
At its peak, Brewdog was valued at more than $1bn, with four breweries and around 100 pubs worldwide. But the company was bought by beverage and medical cannabis firm Tilray earlier this year after racking up debts that wiped out thousands of small investors.
“Brewdog co-founder James Watt has made an offer to buy back the firm months after it was sold to US company Tilray.”
Watt stood down as chief executive in 2024 and moved to a newly created position of "captain and co-founder". His co-founder, Martin Dickie, left the company last year citing personal reasons. The pair sold shares to US private equity fund TSG in 2017, netting £50m each.
After leaving Brewdog, Watt launched a new beer brand, Second Best, offering nearly 20% of shares to people who lost money after investing in Brewdog's "Equity for Punks" scheme. About 20,000 people had invested in that scheme, typically spending about £500 on shares costing £20-30 each. They were left worthless when the firm collapsed.
In an email to those who signed up for Second Best, seen by BBC Scotland News, Watt said he had made an official offer to buy back Brewdog. "If successful, everyone who has signed up to Second Best will own the same stake in Brewdog they once held. For free," he wrote. He added that the firm "should be owned by the equity punks and I will endeavour to ensure that happens."
Watt had previously been involved in a bid to buy back the firm after its collapse but lost out to Tilray. He recently apologised to staff and investors for the "many mistakes" made in managing the company, admitting it tried to diversify too quickly.
Brewdog's brash marketing style regularly sparked controversy, but the firm also faced criticism for its treatment of investors and staff. A 2022 BBC Disclosure investigation uncovered claims of inappropriate behaviour by Watt towards female staff, and revealed that Brewdog violated import laws and fabricated many of its marketing stories. In 2024, the firm faced a backlash after revealing it would no longer hire new staff on the real living wage, instead paying the lower legal minimum wage. Watt denied any wrongdoing alleged in the film and threatened...
But now, with his new bid, Watt is seeking to regain control. Whether investors who lost everything will trust him again remains to be seen.