Nearly 500 jobs are expected to be lost when craft beer giant BrewDog is taken over by an American cannabis firm.
One MP has branded the move “disastrous” for workers, while crowdfund investors look set to be left empty handed.
Tilray Brands, which produces medicinal cannabis and craft beer in the US, has acquired the Scottish brewer for £33m after it fell into administration on Monday.
The move looks set to see the loss of 484 jobs and the closure of 38 bars.
BrewDog’s 18 franchise bars in the UK and internationally will continue to operate, however.
Some 733 jobs in the UK will also be spared, transferring over to Tilray.
The move will see the US firm take control of BrewDog facilities including its brewery in Ellon, Aberdeenshire, and The Hop Hub, a national distribution centre in Motherwell, Lanarkshire.
Starmer ‘stands by’ decision not to join in strikes on Iran with US and Israel
‘A nightmare from hell’: Brits stranded in Doha and Dubai tell of missile strikes and evacuations
Britain has limited means to fight back after years of underinvestment
Be the first to get Breaking News
Install the Sky News app for free
The brewer, which makes craft beer such as Punk IPA and Elvis Juice, closed its pubs on Monday as it sought to confirm a takeover.
In February, consultants AlixPartners were called in to oversee a strategic review and sale process for the business.
On Monday, however, they confirmed that the firm would be put into administration.
Founder James Watt was among parties to hold talks in a bid to secure a potential takeover.
Investors in BrewDog’s “equity for punks” had raised concerns after weeks of uncertainty about the business’s future.
It was one of a number of crowdfunding initiatives set up by the firm before 2021.
Administrators confirmed that any investors would be left empty handed by the deal.
Clare Kennedy, a partner and managing director at AlixPartners said: “As one would expect over the past two weeks, we have received significant interest in the BrewDog business from prospective buyers across both the trade and investment communities.
Read more from Sky News:
How is the Iran conflict affecting UK gas prices?
British luxury yacht-builder sets sail with new owner
“In Tilray, we have secured a purchaser with a passion for craft brewing who will be an excellent custodian and sponsor of the business in the months and years ahead.”
Separately, Tilray is negotiating for deals to buy some BrewDog assets in the US and Australia.
Irwin D Simon, chairman and chief executive of Tilray Brands, said: “BrewDog is one of the most iconic, mission-driven craft beer brands in the UK.
“It helped redefine modern craft beer through bold innovation, fearless creativity and an unwavering commitment to great beer.
“As we begin a new chapter for this great brand, our priority is to refocus BrewDog on the craft beer excellence that made it beloved in the first place and strategically invest to return the operations to profitable growth.
“BrewDog’s future is bright, and we are committed to ensuring the brand continues to lead and inspire the global craft beer movement.”
Harriet Cross, MP for Gordon and Buchan, in which BrewDog is based, said employees should contact the business for more information on how jobs would be affected.
She said: “The loss of 484 jobs and the closure of 38 bars is disastrous, both for the North East and the rest of the UK.
“My immediate thoughts go to the hardworking staff who have been impacted by this through no fault of their own.
“Tilray has told me, in its words, that brewing operations in Ellon remain central to the business and the company has no plans to relocate production from Scotland.
“These cutbacks will be deeply concerning for everyone who has an association with BrewDog.”
She added: “This announcement underlines the growing issues facing the drinks industry and hospitality sector, with challenging market conditions causing financial difficulties like this.
“I will immediately be writing to BrewDog’s new owners asking where these affected roles are, the future plans for the business, and what support is being given to staff at this unsettling time.”
