BDO: several parties interested in Premium
The administrator for Premium and Bars Restaurants has reported that there are several parties interested in buying parts of the business.
Dermot Power, business restructuring partner at BDO Stoy Hayward, said: "All of the names in the Premium Bars and Restaurants portfolio are well known on high streets throughout the UK and Ireland.
"The outlets continue to attract loyalty from their wide customer base. The sudden and sharp economic downturn, and subsequent recession, has impacted on the usually high disposable income of the Group's target market.
"These customers have begun to select the weekend for their discretionary spend. This shift has impacted significantly on a business with high fixed overheads. We are currently in discussions with several interested parties and are confident of securing a sale of the business."
The company had been on the brink of collapse for weeks while the owners tried to put together a deal with London property investors the Reuben brothers.
However, the brothers' company pulled out of an offer to buy the chain of bars after it was unable to agree terms on a takeover offer with lenders who are owed about £40m.
Ultimate's Bankers, led by Royal Bank of Scotland, are believe to have been unhappy at the amount of debt they would have had to write off.
It is understood that a number of senior executives have already left the business, including Charles Williamson, the chief executive.
BDO are set to close about half a dozen loss-making and marginal sites, including Living Room outlets at Chester, Glasgow and Islington, as well as late-night bars in Belfast, Glasgow and Newcastle.
