Maclay Group placed into administration
EY (Ernst & Young) will continue to trade the Steve Mallon-led business, which employs 500 staff and operates 15 pubs, bars and hotels across Scotland, with a view to a sale. It said that the “underlying business is strong”.
The Alloa-based group also managed 12 pubs, of which contracts for five will remain in place, as the Thistle Pub Company which owns the five outlets is not affected by the administration. Management contracts for the remaining seven sites have been transferred to LT Pub Management.
Pressures
In a statement, Maclay Group said: “In recent months the directors have been seeking a strategic solution to the financial pressures facing the business. In light of a solution not emerging in the time available, the directors took this decision in order to protect the employment of its 500 staff and the business which remains profitable.”
Brian Calder, chief executive of Tennent Caledonian Breweries, which entered into a supply deal with Maclay in 2012 and owns a 25% stake in the business, said: “We can confirm that Tennent Caledonian Breweries (TCB) is a supplier to and has an equity involvement in Maclay Group plc. Following the announcement by Maclay Group TCB will work with the bank, the administrators and other shareholders to optimise value for all stakeholders”.
The company reported a pre-tax loss of £169,895 in the 16 months to 1 February 2014, compares to a pre-tax loss of £737,379 for 2012, when there was a property impairment charge of £679,654 for the company.
The firm agreed a £10m term loan facility with Lloyds Banking Group in February 2014.
Operating profit fell from £718,302 in 2012 to £604,616 across the 16 months, which Maclay said reflected a “transitional period” for the group in which it closed three sites for refurbishment. Turnover was £13.6m (2012: £10.4m).
