Powder Train failure report highlights operational weaknesses

A review of the five-strong pub operator carried out in October 2012 by Zolfo Cooper also highlighted “operational weaknesses” in the business, with two sites being a “major drain” on the company “both financially and managerially”.

The report, which was put together at the request of the Royal Bank of Scotland, also pointed to “unrealistic forecasting” in the business, and listed a series of “management issues”: “Lack of defined reporting lines, key tasks, financial reviews, structured operations reviews or board meetings, lack of formal business plan and poor financial information.”

Christie + Co was appointed to market the five outlets and the new report from Powder Train’s administrator Begbies Traynor said initial offers had been invited on the George Inn at Warminster, Wiltshire, and the Kings Arms in Fernhurst, West Sussex, by noon on 25 March.

A bid date of 19 April was set for initial offers for the Chilli Pad in North Warnborough, Hampshire, and the Chequers Inn at Maresfield, East Sussex; the latter site was taken on by Powder Train under a joint venture with Pierre White in 2010.

A profit and loss account for February found that three of the four trading sites were running at a loss and the overall deficit for the month totaled £6,163.

However, the reports says that it expects trading to be profitable in the forthcoming months now “initial trading problems have settled down”.

Powder Train was formed in 2006 by Gales executives David Butcher and Jack Bowyer.