Former employees and specific creditors of BrewDog’s retail arm are unlikely to receive any compensation following the company’s collapse, according to a report from its administrators, AlixPartners. The report noted that there are not enough funds to pay those who are owed money after the company went into administration. Earlier this year, US-based drinks company Tilray acquired BrewDog’s brand, intellectual property, UK breweries, and 11 bars in a rescue deal valued at around £33 million. The administration process led to the closure of 36 bars, affecting nearly 500 workers, before the company was taken over by its new owners. This takeover also rendered the shares of about 200,000 crowdfunding investors worthless. According to the administrators’ report on BrewDog PLC and its retail arm, around £489,000 is owed in terms of retail employee wages arrears and accrued holiday pay. An additional £2.4 million is owed to HMRC for unpaid Value Added Tax (VAT). The report explained that there are now “insufficient funds available” to make any distributions to these “preferential creditors” due to a “reduced level of realisations” for the retail business and increased costs during the administration period. The report also mentioned that employees who were made redundant were given information about government support programs. BrewDog PLC also owes approximately £190 million to unsecured creditors, who are expected to receive less than a penny for every pound they are owed, according to the report. Unsecured creditors are those who do not have a legal claim to the company’s assets in the event of bankruptcy. The administrators did not provide specific details on how the remaining funds will be distributed, if at all. BrewDog’s new owners, Tilray, have been contacted for comment but have not yet responded. The collapse of BrewDog’s retail arm highlights the challenges faced by businesses during financial distress, particularly when assets are sold to new owners. While some aspects of the company, such as its breweries and brand, have been preserved under Tilray’s ownership, the retail operations have been significantly downsized. The situation has left many employees and investors in a difficult position, with little to no financial recovery expected.