Redundancies loom as Regent gears up for possible sale
City rumours of a forthcoming sale of the 71-strong Regent Inns have intensified as the streamlining of the company's HQ operation gathers pace.
A spokesman confirmed that "the board has decided to restructure and streamline the company", but would not be drawn on specific details before an ongoing four week internal consultation process is completed at the end of the month.
"There will be a tidying up and the board will be looking to see which option is best," he said. Jobs will almost certainly be lost and The Publican understands up to one quarter of staff may go.
Regent's press officer Simon Kaye said he could not comment while the consultation process is underway, but admitted that some staff are likely to leave.
Chief executive Bob Ivell, who was appointed last October, has a brief to turn Regent's flagging fortunes around. Mr Ivell has consistently refused to rule out the possible sale of the high street pub company following the restructuring of Regent's debt late last year.
"All the options will be looked at and my task is to find the route which delivers the best value for the shareholders," Mr Ivell has said. He has also been up-front in his declaration that "I can rule nothing out".
Figures for Regent's trading up to and through the Christmas period suggest Mr Ivell is having success in turning the troubled company around, but this may come as cold comfort to staff whose jobs are on the line.
With further consolidation inevitable in the high street, many analysts and commentators agree that Regent's long-term survival prospects would remain uncertain if competitors continue to merge.
A frequently cited candidate for a take-over bid is Globe Pub Company, the group set up by property mogul Robert Tchenguiz for the acquisition of the 364 managed pubs sold by Spirit last year. The fit with the Globe estate, which is now managed by Scottish & Newcastle Pub Enterprises, is good.
Bob Ivell's former experience as Scottish & Newcastle's pubs division chairman would certainly be useful if this was so.
