Living Room sale option considered

The group has appointed Zolfo Cooper Corporate Finance to explore options for Living Room after significant interest was also shown in the 13 ex-Ultimate Leisure sites, which were put on the market earlier this year.

Several approaches were received from funds eager to invest in — or purchase a stake in — the Living Room, which is thought to be valued at more than £10m.

PBR announced a successful refinancing in February, which saw debt cut from £63.1m to £20m, as well as the decision to market some Ultimate Leisure sites for sale, with a view to re-investing some of the released capital into the business.

It is thought Living Room, managed by Eclectic Clubs & Bars since last August, has seen strong trade on the back of a raft of new initiatives. The business was founded by Tim Bacon in 1999 and bought by Ultimate Leisure in 2007 for £28m. Orchid took over the management in 2009.

PBR chairman David Myers said: “We were not looking for external investment in the Living Room as capital released from the sale of the Ultimate sites will offer us a robust trading platform. However, the high level of interest in the Living Room encouraged us to think about this again.

“We are flattered by these approaches, but there’s no hurry. We recently reduced our debt through refinancing, had a strong Christmas and improved early-year sales, so it’s easy to see why there is investor interest in the Living Room business.”