Pubs saved in £3m deal
SIX South Devon pubs have been saved from closure in a £3million deal after their original owners went into administration.
Torquay based Peninsula Inns Ltd, which owned 18 pubs, went into administration just before Christmas.
But 12 of the 18 pubs previously owned by Peninsula have already been bought up by a new firm, Enlighten Inns, owned by Steve Guest, pictured.
These include the Fortune of War and Fox and Firkin in Torquay, the Ferryboat Inn at Shaldon, the Courtenay at Teignmouth and the Hermitage and King of Prussia, both in Kingsbridge.
However Chaplins in Torquay, The Rose at Babbacombe, the Rising Sun in Brixham and the New Quay in Teignmouth will remain closed.
Peninsula director David Bayliss has blamed a combination of the credit crunch, the smoking ban and rising utility costs for the demise of the company that owned pubs across the South West from Bath to the Bay.
He said: "We tried to restructure our loan facilities but with the credit crunch going on that proved impossible."
He added that trading conditions were 'tough' with an 'unprecedented number of external conditions' affecting business.
He explained that the company first noticed a 'ticking bomb' 12 months ago, saying: "But we were in negotiations with the bank and the credit crunch put a bit of a kybosh on it and it closed down several options that would have been available to us had it not happened.
"I am very upset to see it go, there are an awful lot of people who have put in a lot of hard work in to it."
The firm also ran a further six pubs on a management basis.
Steve Guest, owner of Enlighten Inns and former financial director of Peninsula Inns bought the pubs hours after Peninsula Inns went into administration.
"It has been a hectic time to take over in the run-up to Christmas.
He said: "We are just trying to work hard and get everything shipshape at a difficult time.
"We haven't really had a chance to sit down and think about going forward, because it has just been about getting through Christmas.
"All the pubs we have bought are community pubs and we are trying to keep the community pubs open and build on it, because they are difficult times for everybody," said Mr Guest.
Bristol-based administrators BDO Stoy Hayward have been appointed to handle Peninsula's administration.
Simon Girling, business restructuring partner at BDO Stoy Hayward, said: "As consumers have reined in their discretionary spending to account for the difficult economic environment; pubs, bars and restaurants around the country have found that trading has slowed considerably. This slow down has contributed to the difficulties experienced by Peninsula Inns Ltd."
A spokesman for BDO Stoy Hayward added: "BDO Stoy Hayward is currently in negotiations with the licence holder as to ownership of The Ferryboat Inn, Teignmouth, but as these discussions are ongoing, we cannot comment further at this stage."
Chaplins in Torquay, The Rose at Babbacombe, the Rising Sun in Brixham and the New Quay in Teignmouth will remain shut after not been bought by Enlighten Inns whose new headquarters is in Fore Street, St Marychurch.
Teign Brewery in Teignmouth is one of the six pubs previously managed by Peninsula Inns and those pubs have been taken over by Enlighten on the same basis.
The company has also kept on the four staff employed at the Peninsula Inns offices and transferred them to its new premises.
8 Comments
by Paul, Exeter
Thursday, January 08 2009, 3:03PM
“Its a shame to see any pubs go under but in this current climate I think there will be more administrations this year. So far as the comment up the page about noise.... Why rent or buy somewhere near a pub ? If you bought a house near a football staduim would you moan about the crowds cheering every saturday ? Next to a train station would you not expect to hear trains ?”
by DarkSide, Teignmouth
Sunday, January 04 2009, 9:52AM
“You all comment without having a clue (apart from Grant, Paignton), whilst some pompous fool basks in (his own) glory.
You may as well say Hitler was the saviour of Prague.”
by GRANT, Paignton
Friday, January 02 2009, 7:32PM
“What a coincidence.The EX financial director buying out the failed business he was responsible for.In the City this is called insider trading isn't it?”
by Lisa, Torquay
Friday, January 02 2009, 7:26PM
“Having lived by the Rose in Babbacombe for the last 3 yrs I am sorry to see pubs in general close however I won't be sorry to see the back of this place and all the noise and continous trouble this place seems to attract each and every Saturday. Perhaps the pubs that are closing are the ones that don't serve food and instead cater for karaoke and big screen sport! The topping for us has been the smoking ban which has brought everyone out onto the street and made the problem of noise even worse. Lets hope the Rose and similar pubs open as pubs that cater for food & locals and not just the Hooch brigade!!”
by Tim, Torquay
Friday, January 02 2009, 4:59PM
“I am not surprised enough is enough, having lived in the bay all of my life, we have been ripped off for years as a seaside town, having to, pay over the odds for everyday things because greedy shop owners want to make as much as they can, and now the chickens are coming home to roost, the greedy will now become the poor and the broken because of there own greed, i refuse to pay over the odds for anything that can be bought at a more realistic price, even if it means my missed purchase of an item will mean the loss of jobs, wake up people we have gone on for years in this sittuation and now we are begining to get our revenge, bye ,bye, to all you so called up market shop owners we don't want you we want a real sea side town to be proud of not to be priced out of, and before people say torbay is a place full of the elderly , don't forget the young who have to learn, live and train to look after these in there old age, I can remember when you had a good day out and were not affraid to spend a few pounds, and you went home with great memories, and so did the fish and chip shop or the ice cream seller etc.
people go on about the so called cut price shops but we need more of these, Poundland, savers, Wilkinsons, go on destroy the opposition, bye bye greed and that mens all of us me too for 2009.”
by Kevin, Torquay
Friday, January 02 2009, 1:58PM
“It's quite sad when the headline news effectively reads 'Not all Torbay's pubs closing down'. It used to be news when even one closed.”
by Chris Smiles, Devon
Friday, January 02 2009, 12:17PM
“It strikes me there is more and more "pre-packed administration" going on. How is it morally right for a company to go bust leave its creditors up Sh1t street then buy back the best performing sites to start again? Surely the Administrators have a duty to sell the pubs to the highest bidder, its almost like there is an element of collusion between former owners and administrators, but proof wouldnt be easy to find....If there is apparently no downside to going bust, more people will do it - I'm not having a go at this specific company, it appears much worse on a national scale and we the general public will have to pay for it ultimately, by way of higher costs, bale outs, tax increases (at some point), lower pensions (in the future, so thats ok then) etc...”
by Doc, Torre
Friday, January 02 2009, 11:03AM
“See the Herald's Forum topic "The fine - and not so fine - lost pubs of Torquay".
Link at the top of the page.
Comments welcome.”