Kmflett's Blog

The Telegraph (22 Feb) has reported that HSBC, Brewdog’s banker since 2015 has acted to secure loans to the brewer by linking them to the Ellon Brewery as security. The paper reports that Brewdog Chair Allan Leighton signed off on the deal earlier in February.

Brewdog has £92m in HSBC loans outstanding with £25m due for repayment in the next six months.

Given that under the sale process currently being run by AlixPartners, Private Equity investor TSG would get £800m if the sale realised less HSBC would lose out without the security deal.

I won’t be losing sleep over the woes of HSBC or indeed Brewdog management but the reported 1400 Brewdog workers need to be protected here and that protection may be hard to come by under current employment law.