Punch might sell 1,000 Spirit pubs

Punch Taverns is prepared to sell on up to 1,000 of the pubs it has acquired from Spirit Group.

Having committed Punch to converting 750 Spirit pubs to tenancies or leased outlets, chief executive Giles Thorley said his group was under no pressure to act quickly to resolve the fate of the remaining estate.

Mr Thorley said Punch, which paid £2.7bn for Spirit, had not yet identified a specific strategy for the remaining 1,000 sites, but would be reviewing the business in the coming weeks.

"We have a landbank of at least 750 pubs, but we are prepared to sell non-core outlets. It's about being strategic.

"The priority is to keep the business working well along with the Spirit management team," he added.

When it comes to finding tenants for the new pubs Punch will be "taking the existing managers into account", he said.

He confirmed that Karen Jones, Spirit's former chief executive, will continue to work with Punch and that "we will discuss what she wants to do in the long-term".

Regarding disposal opportunities, he expected these "to come out of the woodwork". Mitchells & Butlers are front-runners to pick up a number of 'golden brick' sites - large outlets worth £2m-plus.

Meanwhile Punch is to look for a new head office for its enlarged operations.

Both companies have HQs in Burton-on-Trent, but neither will be large enough to accommodate staff of the combined operation, according to Mr Thorley.

Spirit has around 450 head office employees, while Punch has in the region of 300.

"We have told Spirit's staff that we will be keeping our headquarters in Burton," he said.

Mr Thorley would not be drawn on possible job losses at either office.

Related articles:​

Punch Taverns buys Spirit (1 December 2005)​

Uncertain future for staff as Punch wins race for Spirit (1 December 2005)​