BrewDog to close 10 pubs after Labour tax raid
The self-styled 'punk' brewer said on Tuesday it would close key locations such as Leeds, Sheffield, and London, as well as its flagship site in Aberdeen, and had begun a consultation with staff about redundancies.
A spokesman for BrewDog called it a 'rationalisation' of the company's bar estate.
'Despite our best efforts, and the hard work of our teams, it has simply not been possible to make these bars commercially viable,' they said.
In a letter sent to staff this week, James Taylor, chief executive, said the closures were part of a broader restructure of the company.
He added: 'It positions our bar portfolio for long-term, profitable growth, but also takes into account the continued challenges facing the UK hospitality industry, including rising costs, increased regulation, and economic pressures.'
The closures come as hospitality businesses across the UK grapple with soaring labour costs following an increase in employers' National Insurance (NI) contributions and the lowering of the threshold at which they are paid.
Hospitality chiefs have argued that these changes will disproportionately hurt the sector because of the number of part-time and lower paid staff it employs.
Many have already cancelled investments and paused hiring, while others have announced redundancies.
A spokesman for BrewDog refused to disclose exactly how many jobs would be affected, but said 'every effort will be made to made to redeploy as many members of staff as possible'.
Recent struggles
Founded in 2007 by James Watt and Martin Dickie, BrewDog became one of Britain's biggest beer brands by using controversial marketing stunts.
These included selling what they claimed was the world's strongest beer – served in the carcass of a squirrel – and hiring a tank to drive through London.
Mr Watt claimed the business had a 'punk' ethos and frequently criticised the practices of big brewers like Budweiser's owner AB InBev. The company raised millions from thousands of retail investors it called 'equity punks'.
However, in recent years it has struggled with accusations of being a 'toxic' workplace and questions over its finances.
Mr Watt stepped down last year and has since launched a new company called Social Tip, though he still retains a seat on the board and a 21pc stake in the company.
Mr Taylor, who took charge of the company in March, has shelved plans for a stock market float, saying in June that there were no plans to sell the business.
Instead, he vowed to put the company on a more solid financial footing having made consistent losses. BrewDog's bar business posted a pre-tax loss of £6.7m in 2023 on revenues of £69.4m. This was down from an £11m loss in 2022.
The closures will leave BrewDog with 49 bars across the country. It runs more than 100 across the world.
Mr Taylor insisted in his letter the company was 'passionate' and still saw a 'significant long-term opportunity' for the brand's bars in the UK.
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