Marston’s considering ‘small pub package disposal’
The Wolverhampton-based business currently operates about 1,500 pubs and has around 12,000 employees.
A spokesperson for Marston’s said: “As you would expect, we review our estate from time to time as part of normal course of business.
“We are potentially looking to dispose of a small package of non-core pubs which no longer satisfy our pub strategy.
“In the event of a successful transaction, any disposal proceeds raised will be used to further reduce the company’s debt in line with our stated strategy. A further announcement will be made as appropriate.”
Results revealed
In May this year, the company reported a return to pub operating profit and normalised trading, with life-for-like sales at 97% of 2019 levels in the 26 weeks ending 2 April.
The pub operator announced total EPOS sales were at 99% of H1 2019 and a total revenue of £369.7m despite disruption due to the Omicron variant. LFLs were up 1.3% in first eight weeks of the period and subsequently declined by 8.8% after 27 November due to Omicron-related restrictions.
It also reported new additions to the senior team, pub conversions to generate stronger returns, a menu overhaul focusing on simplicity and efficiency, and an innovated people proposition to improve recruitment and retention.
Property history
Two years ago (January 2020), Marston’s sold 29 pubs to Hawthorn for an undisclosed sum. In the same month, the pub company revealed a trading update where it reported in the year to date (18 January 2020), Marston’s had completed or exchange on £60m of disposals.
Later on in the same year (December 2020), the company announced it would operate SA Brain’s portfolio of 156 pubs in Wales on a combination of leased and management contract arrangements, safeguarding 1,300 jobs.
Marston’s agreed to operate to operate 141 SA Brain & Co freehold pubs under the Brains brand and a further 15 leasehold sites under management contract.
