Pubs 'n' Bars goes into administration
Pubs 'n' Bars (PnB), the troubled London-based pub operator, has gone into administration after its banks, led by lead lender AIlied Irish Bank (AIB), refused to back the company any further.
In a statement issued this morning the group, which last week suspended trading in its AIM-listed shares, said it had failed to secure the support of its banks.
The Publican understands AIB is into PnB to the tune of £24m.
PnB said: "It is therefore with deep regret that the board announces that the group has been advised that it has been placed into administration with David Thurgood, Trevor O'Sullivan and Nick Wood of Grant Thornton UK LLP being appointed as administrators of the group with immediate effect."
Thurgood told The Publican his team will be visiting each of PnB's 100-plus pubs - a mix of managed and tenanted outlets - over the next few days.
"The estate will continue to trade will we review the portfolio," he said. "One or two poorly performing units will be closed fairly shortly but our plan in the longer term will be to stabilise trading."
Thurgood it would be "well into 2010" before his team could look at breaking up the business. In the meantime there were no plans to sell the group, and there were no plans to cut jobs, he added.
Pubs 'n' Bars also said it had been notified of the resignation of its nominated adviser and broker - Daniel Stewart - with immediate effect.
"If, within one month of the group ceasing to have a nominated adviser the group has failed to appoint a replacement, the trading of its securities on AIM will be cancelled at 7.00am on January 9, 2010.
PnB has been in difficulty for several months. Sales and profits have been tumbling, the group pointing the finger at the smoking ban and competition from cheap supermarket alcohol sales, while credit problems compounded its financial difficulties.
