BREWDOG has closed six bars due to soaring energy costs, it has been revealed.
The beer giant, based in Ellon, Aberdeenshire, has shuttered three pubs in Scotland and three in London due to the fuel crisis.
James Watt, founder and chief executive of the company, said it took the decision as it believed it would “be simply impossible to get these bars even close to financial viability” in the foreseeable future.
Management insists no members of staff have been laid off and those working at the now-closed sites have been offered positions elsewhere.
The sites affected are:
- Hop and Anchor, Aberdeen
- BrewDog Peterhead
- Hop Hub, Motherwell
- Smithfield Market Arms, London
- BrewDog Dalston, London
- BrewDog Old Street, London
James Brown, BrewDog's managing director of bars, said: “We can confirm that six of our smaller bars are now closed. All staff at these locations are being kept in continuous employment at other Brewdog bars nearby. There will be no job losses.
“This is part of a regular review of our portfolio. With rapidly increasing costs, including spiralling energy bills, these bars were a substantial distance from being viable to operate.”
"Clueless government"
In a LinkedIn post, Watt said the closures come as the hospitality sector faces “sheer ‘rabbit in the headlights’ paralysis of this zombie government” as rocketing costs threaten the future of many pubs, restaurants and bars.
He said: “Last night we confirmed we were to close six bars around the UK and it is heartbreaking to lose these locations.
“Reality in the hospitality space is starting to bite and bite hard. And the Government needs to get a grip, now.
“If nothing happens, the UK looks set to lose half of its pubs and bars and all the millions of jobs these locations provide, as well as the vital role they play in local communities.”
It comes a day after industry bosses warned that thousands of pubs and restaurants could go bust in the coming months.
Brewdog controversies
FOUNDER James Watt has found himself and his firm embroiled in a number of scandals in recent months.
He threatened to take legal action against the BBC for what he said were "totally false" claims made against him in a documentary.
The chief executive launched the action after a BBC Disclosure programme showed more than 15 members of former BrewDog staff speaking out about Watt and his actions.
Several staff members working at the craft brewer’s outlets in the US alleged they had seen Watt give private late-night tours to female customers and that his conduct often made female bartenders feel “uncomfortable”.
Watt also came under fire in June this year after it emerged he had been in talks with Heineken - after previously speaking out against craft brew firms who sell shares to bigger companies.
Despite Watt's claims that he had been pursuing an initial public offering (IPO) - which would float the company on the stock market - it was later revealed investment bankers had approached Heineken on behalf of BrewDog to discuss selling a stake to the beer giant instead.
Documents also revealed Watt met with executives from Heineken, the world's second-largest brewing firm.
And, the firm was referred to an advertising watchdog after winners of a “solid gold” beer can found it was actually largely brass and worth just a fraction of the advertised price.
