HSBC scrambles to stave off BrewDog losses

Luke Barr

Sun, February 22, 2026 at 5:00 PM GMT+9 4 min read

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A break-up of the loss-making company BrewDog is seen as likely - Sam Brill

HSBC is scrambling to avoid steep losses on tens of millions of pounds of loans to BrewDog as the craft beer business faces a potential break-up.

The banking giant has secured its debts against BrewDog’s sprawling Scottish brewery, giving it the right to seize the property if necessary.

HSBC’s race to secure its loans comes after the struggling brewer recently launched a quick-fire sale process overseen by restructuring experts AlixPartners.

It has prompted fears of losses for investors and creditors alike. The bank is BrewDog’s main lender.

The move came as it emerged that James Watt, Brewdog’s co-founder, is preparing to invest £10m of his own cash into a rescue bid for the group.

Mr Watt is assembling a consortium of investors to acquire the entire group, including its bars, brands and brewing facilities, Sky News reported. The identity of the backers is still unclear.

Security against the brewery gives HSBC greater protection in the event that a sale fails and the company falls into administration.

Recent filings show HSBC’s loans have been secured against BrewDog’s flagship brewery in Ellon, Aberdeenshire. The site, which also includes a distillery and bar, opened in 2012 and produces hundreds of millions of litres of beer annually, including best-selling brands such as Punk IPA and Hazy Jane.

Allan Leighton, the chairman of BrewDog, signed off on HSBC’s claim against the brewery earlier this month.

The additional security comes as the craft beer pioneer races to find a rescuer for its business. A second round of bidding is expected to begin in the coming days.

A break-up of the loss-making company is seen as likely, with the brewing operation separated from BrewDog’s dozens of bars.

Any sale will be complicated by an unusual arrangement between the company and its private equity backers TSG Consumer Partners.

TSG ploughed £213m into BrewDog in 2017 to secure a 21pc stake but this included a clause guaranteeing the fund an 18pc compounding rate of return on its investment.

The arrangement has saddled BrewDog with debts of more than £800m to TSG, meaning any sale must exceed that figure if other investors are to realise a return. The most recent crowdfunding valued the business at £2bn, although any sale is expected to be well below that price.

It is understood that the company’s brand and breweries are the most attractive assets for potential buyers. Its pubs and bars are less appealing in the wake of tax increases by Rachel Reeves, the Chancellor, which piled pressure on the hospitality sector by driving up costs.

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Potential suitors include drinks giants Carlsberg, Heineken and AB InBev, the brewing giant behind Stella Artois and Corona.

Company filings show that BrewDog currently has £92m in outstanding bank loans including £25m due for repayment in six months.

HSBC has backed BrewDog for more than a decade. Mr Watt claimed in 2015 that he had blagged his way to securing an early loan from the bank.

Mr Watt said at the time: “We said that our bank had offered us an amazing deal but that if you can match it we’ll switch and they went for it. You have got to do what you have to do.”

Mark Tate, formerly an executive at HSBC, said in 2013 that BrewDog “is exactly the sort of business we are well placed to serve”.

As well as bank loans, Mr Watt also raised £75m from an army of 200,000 “punk equity investors”. These smaller shareholders are now likely to be wiped out as part of any sale.

Mr Watt, who stepped down as chief executive in 2024 but retains a 22pc stake, is also believed to be rallying his own bid to regain control. However, he has yet to reveal his financial backers.

The scramble to restore BrewDog’s fortunes follows years of losses. The company lost £37m in 2024-25 on revenues of £357m.

Problems have been compounded by slowing sales growth, fuelled by a cost-of-living squeeze and young people drinking less.

Even Mr Watt has admitted to drinking less beer as part of a health kick, limiting himself to between six and eight units a week. One pint of BrewDog Punk IPA contains just above three units of alcohol.

HSBC and BrewDog declined to comment.

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