Pub group Admiral Taverns reviews options including possible sale

It is thought that the group has appointed PwC, who advised on its debt-for-equity swap in 2009, to look at a range of options, which vary from selling some debt, selling some equity or both.

It is thought that the move to appoint advisers comes as Lloyds looks to reduce its exposure in the tenanted pub operator, three years after it underwent a debt-for-equity swap that saw its debt burden decline by £600m with the bank taking a 45% stake in the business in return.

The debt-for-equity swap left the group with debt of around £350m, which it announced in January this year had been cut by almost £200m in 18 months, helped by improved profits and the sale of under-performing pubs.

The company was founded in 2004 by property developer Gary Landesberg and at one point encompassed 2,000 pubs, but it fell into trouble after an aggressive acquisition strategy left it with nearly £1bn of debt, which it was unable to service.

Since the debt-for-equity deal, the group’s fortunes have improved under a new management team led by executive chairman Jonathan Paveley and managing director Kevin Georgel, reporting EBITDA of c£27m for the year to June.

It is thought that the current management would stay in place to continue to oversee the further growth of the business in the event of a refinancing, as it looks to eventually operate a core estate of around 800-1,000 pubs.