Premium Bars & Restaurants in administration

Industry sources say Premium Bars and Restaurants (PBR) has been placed in administration after the Reuben brothers withdrew a bid for the stricken company.

The Reuben brothers, who have £45m invested in the company, tabled a bid for £50m to buy the company. The offer was reduced to £42m last week but was later withdrawn. The move means that the Reuben brothers are effectively walking away from their earlier £45m investment in the company.

It is understood that BDO Stoy Hayward will handle the administration and is likely to appoint Licensing Solutions to oversee the company on an operational basis.

It is likely that the company's banks, led by Royal Bank of Scotland, will eventually look to appoint their own management team, and may call upon the services of Gavin Gracie, a company doctor who worked at PBR for three months on their behalf as "chief restructuring officer".

The Reubens had planned to combine the head office operations of PBR with those of Northern Racing, their 10-course horse racing business.

The banks agreed an emergency funding deal for the company some months ago on the understanding that a deal would be concluded by 31 July.