S&NPC drops 200 pubs as part of restructure

Scottish & Newcastle Pub Company (S&NPC) has confirmed it has pulled out of the management of 200 pubs, mainly in Scotland. In a statement...

Scottish & Newcastle Pub Company (S&NPC) has confirmed it has pulled out of the management of 200 pubs, mainly in Scotland.

In a statement released today, it announced the management of the 207 pubs will be transferred and run jointly by Licensed Solutions and LT Management Services (LSLT).

The move is part of plans by S&NPC to trim its estate of just under 2,000 pubs to around 1,300.

The pubs are owned by Retail & Licensed Properties (R&LP) and currently managed by S&NPC.

The ownership of the pubs will not change with the switch in management.

Licensees at the pubs have been sent letters confirming the move, which will take effect from Monday (November 1).

An S&NPC spokesman said: "The plan to transfer the management of the R&L pubs formed an important consideration in our recent restructuring announcement, and is entirely consistent with our desire to simplify our business model and focus on a high quality, well supported pub estate.

"Our priority over the next few days is continuity of support for lessees and a smooth handover."

Heineken will continue to supply the pubs and licensees have been told to continue paying for beer and rent payments in the same way until instructed otherwise by their new operations managers.

R&LP was set up as part of former M&B shareholder Robert Tchneguiz's investment vehicle R20 in 2006.

Many of the pubs were previously owned by Enterprise Inns before the company pulled out of Scotland.

Billy Buchanan, chief executive of LT Pub Management, said: "'We are very pleased to have formed a business partnership with the Licensed Solutions team and we look forward to working with Retail & Licensed Properties in support of their tenanted / leased estate of in excess of 200 pubs."

And Paul Whitford, managing director of Licensed Solutions, also commented: "We have a very good match of strengths between Licensed Solutions and the team headed up by Billy Buchanan, at LT Pub Management. We all hope and expect that this will lead to other business partnerships with them in the future."

Earlier this month S&NPC revealed 50 jobs were under threat as part of parent company Heineken's plans to restructure the business.

Heineken is looking to integrate the S&NPC structure into its existing on-trade operation as a "stand alone" trade channel.

The move will see S&NPCs five geographic regions realigned with Heineken's three on-trade areas.