A brewing controversy has erupted around James Watt, co-founder of BrewDog, as small investors express their disappointment and anger. The recent sale of BrewDog for a mere £33 million has left many feeling betrayed, especially after Watt's admission of 'many mistakes.'
In a surprising turn of events, Watt took to LinkedIn, a platform he's known for sharing political views, to issue a public apology. He addressed over 200,000 'equity punks' who had invested £75 million in the company through crowdfunding, only to receive nothing in return from the sale to Tilray Brands, a US cannabis and drinks company.
But here's where it gets controversial: the terms of an earlier investment by private equity group TSG left crowdfunding investors with slim chances of a payout. Watt and his co-founder cashed out for £100 million, while the small investors were left empty-handed.
Watt expressed his heartbreak over the loss of 484 jobs and the closure of 38 bars. He acknowledged the highs and lows of his 17-year tenure, stating that the mistakes outweighed the successes. He added, 'I would have loved to save every job and investment, but ultimately, I couldn't. That will stay with me.'
The trade union Unite has criticized the sale as a 'national disgrace,' highlighting the pre-pack administration process that cost nearly 500 jobs. LinkedIn users have also voiced their opinions, with some questioning Watt's sincerity and others pointing out the irony of his 'punk' persona.
One user, Fraser Campbell, commented, 'You walked away with £50 million, while your investors are left with nothing but a bitter taste.' Another, John Allison, wrote, 'Are you heartbroken for giving preference to institutional investors over the equity punks, James?'
And this is the part most people miss: BrewDog's decline from its peak was not just about this recent sale. Five years of losses and a series of brand-damaging controversies, including allegations of a 'culture of fear,' have contributed to the company's downfall. Watt later apologized for these issues, but the damage to the brand's reputation was already done.
So, what do you think? Is Watt's apology enough, or does he need to do more to make things right with his investors and the public? Share your thoughts in the comments below!
