BrewDog founder and ‘world’s worst boss’ fails in £10million bid to rescue troubled brewer as its pubs close today

The Daily Mail understands BrewDog’s founder has failed in his bid to save the troubled brewery after years of losses.

James Watt, who calls himself the ‘world’s worst boss’ and is married to reality TV star Georgia Toffolo, was preparing to raise £10 million of his own money to buy back the Scottish company.

But sources close to the deal said the rescue bid announced during the brewery’s launch last month had failed.

This follows years of declining profits for BrewDog, which was once valued as high as £2bn but has posted cumulative losses of £148m in the last five years.

BrewDog is temporarily closing all 60 of its UK branches today, with a series of meetings taking place to discuss the sale as it gathers momentum.

Chief executive James Taylor said in an email to staff that the closures were to allow employees to attend meetings and adjust to licensing issues.

He said: ‘We recognize this is an unsettling time for everyone and we want to ensure all our colleagues have the opportunity to hear directly from us about what happens next.

Mr Watt became engaged to Georgia Toffolo in 2024, shortly after leaving BrewDog amid allegations of inappropriate behaviour.

‘That’s why tomorrow (Monday) we’ll be running a company-wide series of All Hands calls for all employees across the business. These will be scheduled tomorrow.

‘To ensure everyone can participate and to comply with licensing issues arising from the anticipated change of ownership, we have taken the decision that none of our pubs will open tomorrow (Monday). All sites will remain closed throughout the day.

‘We have also canceled customer bookings as well as food and beer deliveries for the day.’

The Daily Mail contacted Mr Watt for comment.

Mr Watt resigned as CEO of BrewDog in May 2024 following a series of allegations regarding his work culture and conduct on the job, but retains a 22 per cent stake in the company.

Insiders have previously said Mr Watt told potential partners he would contribute around £10 million of his personal fortune to a potential buyout.

His offer comes amid concerns that more than 200,000 people who have invested their own money in BrewDog could lose out if the company is sold.

The company’s ‘Equality for Punks’ scheme has enabled beer lovers to own a small slice of the brewery and enjoy discounts and other benefits.

The company raised a total of around £75 million from selling shares to customers between 2009 and 2021.

Martin Dickie and James Watt (pictured right) founded BrewDog in 2007

BrewDog was founded in 2007 by Mr Watt and Martin Dickie, who often sparked controversy with the brand’s marketing campaigns.

In 2017, TSG Consumer Partners acquired a 21 percent stake in BrewDog in a deal that implied a unicorn valuation of at least $1 billion.

But since then BrewDog has continued to face mounting losses, closing a number of pubs and laying off large parts of its workforce.

Last year the company lost £37 million on a turnover of £357 million.

BrewDog trades from 72 bars around the world, including London and Las Vegas. It employs around 1,400 people and has a four per cent share of the UK off-trade food market by value.

The company produces five of the UK’s eight biggest craft beer brands, including Hazy Jane, Wingman and Lost.

Depending on how AlixPartners’ process progresses, the four breweries in Ellon in Scotland, as well as sites in the US, Australia and Germany, could be sold separately from the rest of the group.

Five years ago, BrewDog was rocked by allegations from dozens of former employees that it operated a “culture of fear.”

They claimed staff were overworked, told to ignore health and safety rules and assaulted or harassed by senior staff, and that many PR stunts, including Elvis’ name change, sending beer to Putin and hostage clearance, were actually myths.

The group claimed Watt was responsible for the company’s ‘rotten culture’, saying: ‘BrewDog was, and still is, built on a cult of personality.’

Six months later the BBC broadcast a devastating documentary in which many former workers from around the world made serious allegations about Mr Watt’s behaviour.

The allegations included that he kissed a drunk customer, advised female staff on how to avoid unwanted attention from him, and even planned to take leave when some were expected to visit venues.

Katelynn Ising, a bar worker in Ohio, said she remembers telling new female staff: ‘Hey, just so you know, James Watt is coming to town. ‘Always don’t do your hair and make-up that day, for example, so you don’t attract his attention.’

He was even accused of taking female customers, some of whom were allegedly drunk, on private tours of BrewDog facilities. A bar staff member in Ohio claimed he saw her kissing a drunk customer.

Watt denied allegations of impropriety but later said he sometimes went on ‘appointments’ in America and apologized for ‘bothering’ everyone.

He later wrote on the Equity for Punks forum: ‘As the program states, I deeply regret anyone who felt uncomfortable around me in any way.’

However, he hit out at what he called ‘false rumors and misinformation’ and complained about the BBC’s film to broadcast regulator Ofcom. Ofcom has not confirmed any of his claims.

By 2023, BrewDog was clouded even as it announced plans to triple its bar and hotel space to 300 venues by 2030.

The foundations shaken by the open letter were further weakened by the BBC’s revelations, and in 2024 Watt stepped down as CEO, unceremoniously assuming the title of Captain.

A BrewDog spokesperson said: ‘As with many businesses operating in a challenging economic environment and facing constant macro fluctuations, we regularly review our options with a focus on the long-term strength and sustainability of the company.

‘Following a year of decisive action in 2025 with a focus on costs and operating efficiency, we have appointed AlixPartners to support a structured and competitive process to evaluate the next phase of business investment.

‘This is a deliberate and disciplined step focused on strengthening the long-term future of the BrewDog brand and operations.

‘BrewDog remains a global pioneer in craft beer: a premium consumer brand, the number one independent brewer in the UK and with a highly engaged global community.

‘Although no final decision has been made, we believe this combination will attract significant interest.

‘Our breweries, bars and venues continue to operate as normal. ‘We will not comment on further speculation.’