Brewdog is closing 10 of its bars, including its first venue in Aberdeen, prompting anger after it was revealed staff have been given just three days’ notice.
The brewer and pubs chain is taking the decision as it seeks a return to profitability. The company said it “has simply not been possible to make these bars commercially viable” and they will shut on 26 July. A consultation process with up to 100 staff has been launched
However, this has infuriated trade union Unite which said: “In what universe is three days a morally (or legally) acceptable notice period for a proper redundancy consultation for the workers impacted?”
Its pub in Gallowgate, Aberdeen, was its first, and is among others in Dundee and across England that will close.
Founder James Watt, who stood back from the business in a management reshuffle, told staff the closures are part of a refresh of its estate, partly in response to “rising costs, increased regulation, and economic pressures” on the sector.
He said the move will not halt its plans to grow the business which will focus on larger bars in “destination” locations.
A Brewdog spokesman said: “We can confirm that following a review of our bars business we have made the difficult decision to close 10 bars – which reflects a more focused strategy and a rationalisation of our bar footprint.
“This decision is not simply a response to the challenging UK hospitality market, but a proactive decision to redefine the bar division’s focus for long-term and profitable growth – accounting for ongoing industry challenges, including rising costs, increased regulation, and economic pressures.
“We are working hard to minimise the impact on our people, and we expect to redeploy many affected team members across the BrewDog network.
“For those leaving the business, we’re providing as much support as possible during this transition.”
BrewDog CEO James Taylor is tackling the company’s trading position after reporting an adjusted EBITDA of £7.5 million but admitting that it was likely to make a pre-tax loss for the year. Revenue came in about flat at about £280m.
There has been talk of the company floating on stock exchange but he said this is not on the agenda “at the moment”. Recent research has suggested that there is little value in the equity held by the army of fans who bought into the company’s fund-raising exercises.
Bars closing:
-Aberdeen Gallowgate
-Brighton
-Camden, London
-Dundee
-Leeds North Street
-Oxford
-Sheffield
-Shepherds Bush, London
-Shoreditch, London
-York
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