Peninsula Inns placed in administration

Torquay based Peninsula Inns, which owned 18 pubs, went into administration just before Christmas.

Twelve of the pubs have been bought by a new company, Enlighten Inns, owned by former Peninsula financial director Steve Guest.

Peninsula boss David Bayliss said a combination of the credit crunch, the smoking ban and rising utility costs forced the company into administration.

He said: "We tried to restructure our loan facilities but with the credit crunch going on that proved impossible."

Enlighten Inns bought the pubs hours after Peninsula Inns went into administration.

"All the pubs we have bought are community pubs and we are trying to keep the community pubs open and build on it, because they are difficult times for everybody," Simon Girling, business restructuring partner at BDO Stoy Hayward, said: "As consumers have reined in their discretionary spending to account for the difficult economic environment, pubs, bars and restaurants around the country have found that trading has slowed considerably.

"This slowdown has contributed to the difficulties experienced by Peninsula Inns."