UPDATE 23 FEB: BrewDog co-founder James Watt is prepared to commit £10 million of his personal wealth to a private equity backed bid to buy back the business, according to City sources.

Speculation has been swirling for several weeks about Mr Watt’s likely interest in returning to the Aberdeenshire company he set up with Martin Dickie.

Alix Partners were called in earlier this month to consider options for the business, including a break up of the assets.

HSBC has moved to avoid steep losses on tens of millions of pounds of loans to the company. The bank has secured its debts, giving it the right to seize the property if necessary.

Security against the brewery gives HSBC greater protection in the event that a sale fails and the company falls into administration. BrewDog has debts of £800m.

Recent filings show HSBC’s loans have been secured against BrewDog’s flagship brewery in Ellon, Aberdeenshire. Allan Leighton, the chairman of BrewDog, signed off on HSBC’s claim against the brewery earlier this month.

Mr Watt is keen to acquire the group in its entirety. BrewDog owns breweries in Aberdeenshire, Australia, Germany and the US, as well as a chain of pubs and hotels.

The current ownership structure entitles 23% owner TSG Consumer Partners to wipe out 220,000 retail investors because of the preference shares it holds.

According to Sky News, Mr Watt is said to be considering a move that would safeguard the interests of its “punk” investors who collectively own about a fifth of the company while he would hold about half the firm.

It is understood he will be among the final bidders, including a number of brewers, which will be submitting offers this week.

Mr Watt, who stepped back from day-to-day running of the company in 2024, was drawn into a dispute with some employees over his running of the company.

The company is now under new management which is attempting to restore profitability. The company’s last accounts showed a £36.6 million loss.

Current chief executive James Taylor has closed a number of pubs in the UK and US, as well as its distillery adjacent to the Ellon brewery.