Brewdog administration shows urgent need for creditors to take pro-active steps to recover unpaid bills
The administration of Scottish beer giant Brewdog, which has left £20m in unpaid bills to hundreds of UK businesses following its collapse last month, illustrates the pressing need for creditors to establish proper credit control systems and pro-active steps to recover unpaid bills.
A report by administrators Alixpartners revealed almost 500 firms are owed money by Brewdog, ranging from coffee shops, bakeries and laundry services, to lawyers, councils and holiday parks.
The Aberdeenshire-based brewer had more than £500m of debts when it was sold last month to US drinks firm Tilray in a £33m deal.
John Di Paola, senior associate at Holmes Mackillop said it was disappointing to see businesses not paid in full for their work, and that it was unfortunate that in this case recovery may be minimal.
“When this happens to small businesses, it could be devastating and may impact their ability to continuing trading,” he said.
“However, while Brewdog has gone in administration, other companies will simply continue to trade without settling their debts. We strongly recommend creditors establish proper credit control systems and pro-active steps to recover unpaid bills.”
Holmes Mackillop regularly advises businesses of all sizes as well as sole traders to recover monies they are entitled to.
ENDS
For further information please contact John Di Paola tel 0141 226 4942