Orchid deal for Premium imminent
Orchid Pub Company, the managed operator of 250 pubs led by Rufus Hall, is set to acquire Living Room operator Premium Bars and Restaurants in principle within the next 24 hours.
Sources suggest the deal is very close to being announced with a detailed agreement to be finalised in the coming three or four weeks.
The deal will be the second one for Orchid since it went through a pre-pack administration, shedding around 50 sites, last December.
The company took Bar Room Bar's best sites out of administration two months ago. Hall has previously signalled that he feels the time is right to operate high street assets. Industry sources suggest that a number of Premium's loss-making sites will be left in administrstion.
Speculation that Orchid would become involved in running Premium has been rife in the industry for a couple of weeks after key Orchid staff were spotted undertaking due diligece at Premium venues.
Premium was placed in administration in August after shareholders the Reuben brothers failed to buy the business after bidding around £50m.
The property entrepreneurs denied suggestions they were responsible for failure of the deal by attempting to renegotiate the price, insisting the company's banks, led by Royal Bank of Scotland, were to blame.
In a statement at the time Simon and David Reuben said they believed that "senior lenders have frustrated any conceivable opportunity to keep the business trading as a viable entity".
Administrators BDO Stoy Hayward immediately closed three outlets: Advocate in Chichester Street, Belfast; Sea in Cambridge Street, Glasgow; and Rewind in Groat Market, Newcastle. It is also seeking buyers for the remaining 45 sites.
