BrewDog was sold to Tilray in a £33m rescue deal as 38 bars closed and 484 jobs were cut.

BrewDog has been sold to US cannabis and craft beer group Tilray in a £33 million rescue deal that will save hundreds of jobs but see 38 bars close with the loss of 484 roles.

The Scottish beer brand, founded in 2007 in Aberdeenshire, has been acquired by Tilray Brands, which owns a portfolio of US breweries and cannabis operations. Under the deal, Tilray has bought BrewDog’s UK brewing business and its 11 pubs across the UK and Ireland.

The transaction includes BrewDog’s brewery in Ellon, Aberdeenshire, and its national distribution centre, Hop Hub, in Motherwell, Lanarkshire. 733 jobs will be saved in the UK, and affected staff will be transferred to Tilray.

However, management has confirmed that 38 bars not included in the agreement will be closed permanently, resulting in the loss of 484 jobs. BrewDog’s 18 franchise bars in the UK and overseas will continue to trade as normal.

Irwin D Simon, chairman and chief executive of Tilray Brands, described BrewDog as “one of the UK’s most purpose-driven beer brands”.

“It helped redefine modern craft beer through innovation, bold creativity and an unwavering commitment to great beer,” he said. “As we begin a new chapter for this great brand, our priority is to refocus BrewDog on the great beer that made it popular in the first place and invest to return operations to profitable growth.”

Simon added that Tilray is committed to ensuring that BrewDog continues to “lead and inspire the craft beer movement around the world”.

The sale follows weeks of uncertainty after BrewDog confirmed it was working with advisers to explore strategic options amid mounting financial pressure. The company has temporarily closed all 60 of its UK bars to allow staff to attend internal meetings and comply with licensing requirements ahead of the expected change of ownership.

Chief executive James Taylor told staff that the closure was necessary to ensure staff would be kept up to date with developments and to manage regulatory issues associated with the change in ownership.

The deal comes after a last-minute attempt by BrewDog founder James Watt to buy the company fell through. Watt, who stepped down as chief executive in May 2024 but retained a 22% stake, was preparing to invest around £10 million of his own money as part of a potential takeover. Sources close to the situation said that this proposal did not materialize.

Watt co-founded BrewDog with Martin Dickie and built a global beer brand through provocative marketing and rapid expansion. In 2017, private equity firm TSG Consumer Partners acquired a total of 21% in a deal that valued the company at more than $1 billion, cementing its “unicorn” status.

However, in recent years, BrewDog has struggled with mounting losses, operating costs and declining bar operations. The company, which reported a loss of £37 million last year on profits of £357 million, has already closed several sites and cut staff.

The business is also facing questions from its large base of retail investors. Through its “Equity for Punks” programme, BrewDog has raised around £75 million between 2009 and 2021 to more than 200,000 minority shareholders, giving them small stakes and product benefits. The long-term implications of Tilray’s deal for those investors remain unclear.

Under the deal, the following UK locations are understood to remain open as part of the Tilray acquisition: Birmingham, Canary Wharf, DogTap Ellon, Dublin, Edinburgh DogHouse, Lothian Road, Manchester, Paddington, Seven Dials, Tower Hill and Waterloo.

The sale marks a major shift for BrewDog as it moves under American ownership, with Tilray expected to consolidate UK operations into its wider craft and cannabis portfolio while seeking to return profits to one of Britain’s best-known beer brands.