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More than 200,000 Brewdog investors will be left reeling after news that the beer behemoth has put itself up for sale.
Founded in 2007 by James Watt and Martin Dickie, Brewdog shunned traditional routes of raising cash.
It was among the first businesses to 'crowdfund', offering its customers the chance to invest and gain equity in the company.
Its first campaign saw over 1,000 people invest in Brewdog with an average investment of around £500.
Since then, around 220,000 beer enthusiasts piled £75million into the firm across seven 'equity for punks' rounds.
However, these 'equity punks' are now likely to be pushed to the bottom of the pile as Brewdog puts itself up for sale.
Brewdog falls flat: The beer firm is putting itself up for sale but small investors will be left out of pocket
Over the weekend, the beer firm confirmed it had appointed consultants AlixPartners to 'evaluate the next phase of investment for the business.'
It is expected to result in Brewdog either being sold in full or its bars and breweries being sold separately.
If a deal is struck, Brewdog's private equity investor TSG, which holds a 21 per cent stake, is likely to enjoy a hefty windfall, while investors who put thousands of pounds into Brewdog could be left with nothing.
It is not the first time equity punks have criticised Brewdog, which positioned itself as an anti-establishment brand and a challenger to the big breweries.
Equity punks were also entitled to discounts on beer and invitations to the group's AGMs in Aberdeen.
When TSG bought a stake in the firm in 2017, some equity punks could cash out their investment. But this deal changed the way Brewdog shares were structured.
Previously, there were two types of shares – Class A held by founders and employees, and Class B mostly for crowdfunding investors.
The TSG deal saw the introduction of 'preference shares', which would mean that TSG would have preferential treatment if Brewdog was sold, listed or closed.
As Brewdog's performance has floundered – it recently reported losses of £37million – the valuation of the firm has plummeted.
In its last funding round in 2021, Brewdog commanded a £2billion valuation, but just a year later this had plummeted to less than £520million.
It means that if there is a sale then there will be very limited money left for investors after TSG is paid.
There is no direct way for equity punks to cash out their investments at this point, unless they are sold to willing participants, of which there are likely now very few.
The sale marks a huge fall from grace for Brewdog, which at one point was eyeing a public listing.
Founder James Watt faced criticism for creating a 'culture of fear' and for diluting the company's 'punk' ethos. He stepped down as chief executive in 2024.
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THE RISE AND FALL OF BREWDOG2007 – James Watt and Martin Dickie launch Brewdog
2009 – Brewdog launches Equity for Punks crowdfunding scheme
2010 – Brewdog opens its first bar in Aberdeen
2011 – First bar in London launches and second Equity for Punks scheme raises £2.2m.
2012 – Brewdog move into new brewery in Ellon
2013 – Third equity punks round raises £4.25m
2015 – Brewdog launch in the US
2017 – Another crowdfunding round
2018 – First Brewdog hotel and another round raises £22.6m
2021 – 'Punks for Purpose' accuse Watt of creating 'toxic' culture. TSG buys a stake
2022 – BBC Panorama airs Brewdog documentary
2024 – James Watt steps down as CEO
2025 - Martin Dickie steps down from Brewdog
2026 – Brewdog puts itself up for sale
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