Distress sales up — but at good prices

More "distress" sales of pubs are taking place than ever and their relatively cheap prices mean they're being snapped up quickly.

That's according to Stephen Taylor, managing director at Guy Simmonds. Agents broadly define distressed sales as those made urgently when a vendor faces administration or other financial pressures.

Taylor said: "There are more distressed sales than ever unfortunately. Receivers are very busy. We tend to prefer to sell going concerns. But distressed sales and closed units are very attractively priced.

"Pubs that are closing now account for 5% to 10% of our business, which was almost unheard of before. I forecast that you will see an increase."

Fleurets director Simon Hall said distressed pubs weren't selling in great numbers, but added: "There is still good demand as a lot of operators can take them on without significant cash outlay."

As for bottom-end pubs, Hall anticipates a "new wave of disposals" as Punch and Enterprise get ready to start their new years.

Kerr Young, from Christie+Co, said pub vendors were still seeking advice on distressed pub groups and single sites, many bottom-end.

"Despite the challenges facing the sector, demand for these businesses continues to be strong. "For example we recently sold two closed freehold sites in Edinburgh. One generated a competitive bidding process, while a deal was agreed on the other site within a week of it coming on the market."