Troubled pub operator Pubs ‘n' Bars goes into administration

Troubled pub operator Pubs ‘n' Bars has gone into administration

David Thurgood, Trevor O'Sullivan and Nick Wood of Grant Thornton have been appointed as administrators of the firm, which runs 87 "community pubs" in the South East.

The move comes days after the AIM-listed firm requested that trading in its shares be suspended.

In September the Pubs ‘n' Bars' subsidiary Moorgate Taverns, which held an estate of ten freehold public houses, was put into administration.

Grant Thornton attributed Pubs ‘n' Bars' problems to the onset of the smoking ban, the decline in gaming machine income and the general reduction in consumer spending brought on by the recession.

David Thurgood of Grant Thornton said: "Currently we are assessing the financial situation of the Group and each of the pubs individually whilst all the pubs remain operational for the time being. However it is clear that some of the weaker units may need to be closed to conserve cash in the business."

Pubs ‘n' Bars' turnover for the six months to 31 June 2009 stood at £10.3m, down from £11.2m for the same period in the previous year. Meanwhile it made a loss of £691,000 for the first half of 2009, compared to a profit of £128,000 for the same period in the previous year.

Pubs ‘n' Bars seek to suspend trading shares >>

Pubs ‘n' Bars to put Moorgate Taverns into administration >>

Pubs ‘n' Bars breaches banking covenants as it slides into the red >>
By Neil Gerrard

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