Cains to thrash out new rescue package with its bank

Cains Beer Company hopes to reach an agreement with its bankers within the next few days to stop the taxman from winding up the business next week.

In a statement issued today the Liverpool brewer said it had been working with its advisors to hammer out a deal with the Bank of Scotland, which last week said "no" to Cains' own rescue proposals.

Cains needs the co-operation of its bank in order to fund a settlement with the tax authorities over an unpaid tax bill, with the company facing the prospect of being wound up on August 12 if it does not pay.

"We and our advisors continue to work with and alongside the bank's consultants to formulate a plan which would prove acceptable to the bank," the statement read.

Cains' chief executive Sudarghara Dusanj refused to comment further, other than to thank staff and customers throughout the North West "for their continued support" of the company.

A further announcement would be made "as and when" necessary, he added.

A spokesman for Bank of Scotland said the institution was unable to comment for the time being "for legal reasons".

Cains faces being wound up by the High Court next Tuesday after Her Majesty's Revenue & Customs demanded payment of an outstanding tax bill.

It is believed the brewer simply does not have the money to pay the bill in one go and is seeking a deal with its bank whereby it can pay off the debt over an extended period of time.

If an agreement cannot be reached with the bank the brewer, which also owns around 100 pubs of the old Honeycombe Leisure estate, will be closed down with the loss of approximately 1,000 jobs.

Hit by the tough trading environment, Cains' financial predicament has been made worse by incurring £4.5m losses in the first half of the current financial year, after buying a pub estate in its native North West at possibly the most difficult point in the licensed trade's recent history.

Meanwhile Unite, the trade union, called on the Bank of Scotland "not to turn its back" on Cains and its 1,000 staff.

Franny Joyce, Unite regional official, said: "It would be a disgrace if this company was to fail and Liverpool in its Capital of Culture Year was to lose part of its history in such a manner.

"We want to make sure that the 1,000 workers at Cains keep their jobs - they should not be casualties of the credit crunch."