Brewdog pulls out of Durham bar opening
Brewdog has reversed its plans to open a long-awaited bar that was based in Durham’s Milburngate development. But what has happened to the venue and why, after a big investment into the business, has the site been abandoned? db finds out.
When questioned on the future of the much-anticipated Durham venue, the Scottish beer and bar owner disclosed that the site was not included in the assets rescued from administration earlier this year by US brewer and cannabis group Tilray Brands in a deal understood to be in the region of £33 million.put up for sale in February.
The multi-million-pound riverside development, where the proposed bar has stood empty and fully fitted out. but left unopened, will now need to be leased to a brand new operator willing to adapt the space. The Brewdog business has already come under scrutiny amid its recent “rescue” deal after Unite Hospitality, the union that represents Brewdog’s workers, has reacted with anger over what it has described as “years of catastrophic mismanagement”.
Unite national lead for hospitality Bryan Simpson explained: “The way in which senior management have conducted themselves throughout this sales process has been nothing short of a national disgrace” and highlighted that there was a lack of transparency for many affected with the suggestion that clarity for the business’s plans had been lacking with many affected offered “no information about the company’s plans or their futures”.
Years of delays and setbacks
Brewdog initially revealed plans to open at Milburngate in 2022 beside the complex’s Everyman Cinema and Premier Inn but was thwarted by a series of construction delays and setbacks.
At the start of the year, Brewdog also revealed plans to close its distillery at its headquarters in Ellon, Aberdeenshire, shuttering the business indefinitely. Following this move, in March, Brewdog then revealed it would be closing 38 bars, sacrificing hundreds of jobs before the troubled beer and bar business secured a deal with US drinks giant Tilray Brands.
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Despite some Brewdog sites across the UK and Ireland being saved as part of the takeover, the Durham venue was said to not be listed on either the closure list nor the bar portfolio listing acquired by Tilray.
Milburngate not protected by Tilray deal
Speaking about the situation, a spokesperson for Brewdog has since clarified its position on the site and admitted that “the lease at the Milburngate development was not part of the Brewdog assets acquired out of administration by Tilray Brands”.
A spokesperson for Northhold Group, which acquired the development earlier in the year, assured: “Our consultancy team are currently progressing the remedial works package for Milburngate, with works due to commence soon. In relation to the former Brewdog unit, which was fully fitted out before the administration process, we recognise it as an important space within the scheme and would welcome dialogue with appropriate operators regarding its future occupation.”
Despite there being no fixed time for completion, Northhold Group has said it plans to work with Durham County Council to do what it can open the venue as soon as possible.
db has reached out to Brewdog for further comment on the fact that it has been forced to adapt its plans for the venue, but so far the beer and bar owner has stayed silent on how things will progress from here.
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