Cains still in crisis talks with banks

Troubled Cains Beer Company remains in crisis talks with its bankers as it seeks to avoid being wound up by the taxman over an unpaid tax bill.

Her Majesty's Revenue & Customs (HMRC) is seeking to have the brewer wound up on August 12 if it fails to pay an outstanding tax invoice.

Cains, which undertook a reverse takeover of pub operator Honeycombe Leisure last year, has not revealed the amount of the unpaid tax, but it is believed to be significant enough to be difficult for the company to pay off in one go.

The outstanding tax bill was the knock-on effect of the group making a pre-tax loss of £4.5m in the six months to April 28, 2008, according to Cains' chief executive Sudarghara Dusanj.

Dusanj told thepublican.com​ today that the company had agreed "in principle" a schedule of paying off the debt, but that it needed the support of its banks to be able to hand over the cash.

"We've agreed a repayment schedule with HMRC and we've tried to do this within the terms of our existing bank facilities. We're in the middle of tough negotiations with our banks and we hope they will be supportive," Dusanj added.

Trading had been "really tough", Dusanj said, echoing the brewer's half year results statement issued earlier this week in which it revealed the £4.5m loss, versus a £2.7m deficit for the 14 months to October 28, 2007.

"The losses knocked us for six," Dusanj said, "but the environment we're now in was completely unpredictable. We've made progress in turning Honeycombe around but like when we took on Cains, it takes time."

Cains, which employees around 1,000 staff across its brewery and 100-plus pubs, is trading as normal as it seeks to seal a deal with its banks.