Scottish craft brewery Innis & Gunn collapsed into administration on Friday before being swiftly purchased by C&C Group, the Irish drinks giant behind Tennent’s Lager.

The rescue deal, valued at £4.5million, preserves the Edinburgh-founded brand but comes at a significant human cost. Around 100 workers face redundancy following the acquisition.

Administrators Christopher Jon Bennett, Oliver Stuart Wright and Samuel Alexander Ballinger were appointed earlier today, with C&C Group completing a pre-packaged purchase within hours.

The brewery, established by Dougal Gunn Sharp in 2003, had battled declining consumer spending and mounting cost pressures that ultimately proved insurmountable.

Every Innis & Gunn taproom across Scotland will shut permanently as part of the administration process. Venues in Glasgow, Edinburgh and Dundee are all set to close their doors for good, alongside the company’s Perth brewery operations.

The Edinburgh taproom had previously claimed the UK Casual Dining Concept Award in 2016.

Innis & Gunn has won double gold at the World Beer Awards, taking the title of best in Scotland for the second year in a row. The annual competition, judged by international beer experts, recognises the best beers in each category and country.

The brewery’s Original beer secured gold in the Wood Aged category, while Lager Beer retained its gold award in the Classic Pilsener category. Both were named Scottish country winners in their respective categories.

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A handful of employees will remain temporarily to oversee the orderly wind-down of both the brewing facilities and hospitality sites.

Administrators stated they would continue supporting those affected during this difficult period.

The brand, which exports to 35 countries worldwide, had grown into one of Scotland’s most recognised beer names since its founding over two decades ago.

Founder Dougal Sharp described the outcome as “a very difficult day” and offered a heartfelt apology to those affected by the collapse.

“I’m deeply sorry to everyone affected – particularly my colleagues who have lost their jobs and the shareholders who believed in what we were building,” Mr Sharp said.

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Despite the painful circumstances, he expressed immense pride in what the team had accomplished together, creating a distinctive Scottish beer brand enjoyed by customers both domestically and internationally.

Mr Sharp added that while this was not the outcome anyone had hoped for, he was pleased the brand had found a home with C&C Group, with whom Innis & Gunn had collaborated closely for years.

C&C Group chief executive Roger White expressed satisfaction at bringing the brand fully into their portfolio, despite the challenging circumstances surrounding the acquisition.

“We have worked with Innis & Gunn for many years,” Mr White stated, noting the company already brews most of the product and expects the deal to contribute positively to financial performance in the 2027 fiscal year.

The Irish firm had held an eight per cent stake in Innis & Gunn since 2021 and served as a brewing partner.

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The collapse follows similar turmoil at BrewDog earlier this week. The Aberdeenshire craft brewer was sold to US company Tilray for £33million after entering administration on Monday.

Tilray agreed to buy the brewery and 11 bars, but 38 other pubs have closed and 484 staff have been made redundant.

BrewDog co-founder James Watt apologised to staff and investors after the job losses. He admitted he had made “many mistakes” and said it had been an “incredibly hard” week.

Unions, employees and investors have criticised how the sale was handled, particularly after hundreds of workers lost their jobs and many people who invested through the company’s Equity for Punks scheme were affected.

In a statement posted online, Watt said he was “heartbroken” for those who had lost their jobs and for investors impacted by the collapse.