James Watt has reportedly tabled £10million of his personal wealth as part of a consortium bid to regain control of BrewDog.
The move could preserve a stake for the company’s 200,000-plus “Equity Punks” retail investors amid fears they could be wiped out in a fire sale.
The BrewDog co-founder is understood to have secured private equity backing as the Ellon-based brewer works with restructuring specialists AlixPartners following years of sustained losses and stalled sales.
Final bids are expected imminently, with other brewing groups and private equity firms also circling the business.
Under proposals that have been discussed, The Times reports that around a fifth of the equity currently held by retail investors could be rolled over into a restructured company, with Watt holding about half of the business and his backers the remainder.
While this would preserve a shareholding for small investors, it would not necessarily result in an immediate payout.
BrewDog raised more than £75million across seven “Equity for Punks” crowdfunding rounds during its rapid expansion, offering discounts, perks and access to its “Annual General Mayhem” festival-style shareholder event.
However, changes made during a 2017 private equity deal — including the creation of preference shares — have led to concerns that retail shareholders could rank behind institutional investors in any sale process.
Sky News reported that Watt is preparing to inject £10million of his own funds into the proposed deal.
It is also understood the bid could see the reinstatement of the Real Living Wage of £13.45 per hour and £14.80 in London, which BrewDog stopped offering in 2024, triggering backlash from staff at the time.
There is no certainty a transaction will complete. Watt, BrewDog and AlixPartners declined to comment.