The future of BrewDog could be resolved within days, with founder James Watt reportedly pulling out of a bid to buy back the business as takeover talks intensify.

Watt, who co-founded the Ellon-based brewer in 2007 with Martin Dickie, had been preparing to invest £10m of his own money in a comeback bid. However, according to reports, he has now withdrawn from the process, ending speculation of a dramatic return.

The development comes as restructuring advisers AlixPartners progress a formal sale process, with final bids expected imminently. BrewDog closed all of its bars today to facilitate staff briefings and comply with licensing requirements linked to an anticipated change of ownership.

Royal Unibrew in advanced talks

Danish drinks group Royal Unibrew is understood to be weighing up a move to acquire most of BrewDog’s operations.

Senior executives reportedly visited the Ellon brewery this week, with internal communications suggesting “significant progress” has been made and a deal could complete as early as next week.

As part of the potential transaction, BrewDog’s German division is expected to be liquidated.

Other suitors are believed to include major European brewers such as Heineken, Carlsberg and Asahi, while private equity interest in the group’s bar estate has also been mooted.

AlixPartners could split the business into three components, being brand, bars and brewing facilities, in order to maximise value.

From £2bn valuation to restructuring

The sale marks a dramatic reversal for BrewDog, once valued at £2bn and synonymous with the UK craft beer boom.

In recent months the brewer has posted heavy losses, including a £37m deficit last year, cut jobs, halted production of its gin and vodka brands at Ellon and closed 10 UK bars, including its Aberdeen flagship.

It currently employs around 1,400 people and operates around 60 bars in the UK.

HSBC has reportedly secured the firm’s debts against its Aberdeenshire brewing estate, giving the bank rights over the property.

The company’s board previously said it was evaluating “the next phase of investment” after a year focused on cost cutting and operational efficiencies.

Fallout from ‘equity for punks’

Any sale is likely to reignite anger among BrewDog’s roughly 200,000 small-scale shareholders, who invested £75m across multiple rounds under its ‘equity for punks’ crowdfunding scheme.

Concerns have been raised that private equity backer TSG’s compound return agreement could see it take the majority of proceeds, leaving retail investors with little or nothing.

Leadership turbulence has compounded the uncertainty. Watt stepped down as CEO in 2024, moving into a “captain and co-founder” advisory role, while Dickie exited last year.

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The company has also faced criticism over wage policy changes and workplace culture allegations in recent years.

For grocery buyers, the key question is continuity of supply and brand positioning.

BrewDog remains a significant presence in the premium and craft beer aisle, with strong recognition among younger consumers despite reputational headwinds.

A takeover by a major European brewer such as Royal Unibrew could stabilise distribution and reinvest in the core beer portfolio, but may also accelerate a shift from challenger ethos to mainstream brand.

With restructuring specialists in place and final bids imminent, BrewDog’s next chapter (whether under Scandinavian ownership or another buyer) looks set to be decided within days.