Orchid set to unveil PBR deal

Orchid Group, the managed pub operator led by Rufus Hall, is expected to announce the acquisition of the troubled Premium Bars & Restaurants (PBR) business later today.

It is understood that Orchid will buy 39 of PBR's 43 sites from administrators, with plans to re-open a head office for the group in the North East, at the expense of its current base in Hale, Cheshire.

The value of the deal is not known.

Sources indicate that Orchid has set aside some £3.5m to invest in the PBR business in capital expenditure projects in 2010.

It is believed that Bob Dawson will become head of operations at PBR and that Darren Traynor, who previously ran Orchid's carvery business, will be asked to head operations at the Living Room brand.

In addition, it is thought that Danny Fox, currently head of operations at PBR, will leave the business after conducting a handover in the coming months.

The deal saves about 1200 jobs.

Sources also suggest that the transaction will allow both PBR and the 250-strong Orchid to access greater discounts from suppliers, given its increased size.

The Reuben brothers, who owned a 32.5% stake in the Premium business, had a bid for the company rejected by PBR's lenders RBS in early August, prompting its fall into administration.

BDO Stoy Hayward handled the administration process.