Bowes' ex-backer sets up new pubco

Staff working for the new company set up by former London & Edinburgh Swallow Group (L&ES) backers will be paid all outstanding wages, according to advisers to the group.

Oxford Hotels and Inns Management Limited (OHI) will operate the 250-odd hotels and managed and tenanted pubs whose leases were bought by Flodrive Holdings, a company owned by property develop and former L&EI backer Tony Khalastchi.

"All the staff at these sites will be paid, even for the time they weren't being paid under the old Swallow regime," said Tony Meakes, director of investment at property agents Colliers CRE, which is advising the new group.

All pubs will have been visited shortly and a supply deal with ScotCo was being sorted out, he said.

Mr Meakes added that the new company was "totally unconnected with either Swallow Group or Alan Bowes" and that the former head of the collapsed pub and hotel chain had no financial interest in the new entity.

Tony Khalastchi said he set up OHI after the management of L&ES had told him they couldn't pay rent on the freehold properties he owned.

"As a precaution I set up OHI just in case the worst came to the worst. Unfortunately it did, but we had our plans in place and we were able to move quickly to secure the businesses and save the jobs of those working in them.

"The team we now have in place has the knowledge and expertise to ensure the successful trading of these businesses and we plan to stay fully involved as we build this group back up to where it was once was."

The OHI management team includes former L&EI personnel, including Kamran Aziz, who takes the role of OHI managing director, and Guy Lissimore, who heads up the new group's 160-strong tenanted pub division.