Lancashire brewery considering taking over iconic Blackpool nightspot

A Lancashire brewery is considering taking over one of Blackpool’s best known venues in a bid to safeguard its long-term future.

Blackburn based Thwaites stepped in when the Funny Girls venue in the resort went into administration in September.

The brewery has been running the drag club and bars under licence but has said it will consider taking over if a new owner cannot be found.

The news was announced in the brewery’s half-year figures.

Thwaites said the long hot summer and the World Cup boosted trade and helped to increase profits.

But it also warned that increasing costs, weakening consumer confidence and the increasing uncertainty surrounding Brexit all presented challenges in the second half of the year.

Turnover for the period was £49.9m, an increase of four per cent. Operating profit was also up by four per cent to £8m.

Net debt at the end of September was £70.2m, an increase of almost £10m as a result of the investments that firm made at the Beverley Arms and its new brewery, offices and stables.

The construction of the new brewery, offices and stables is now finished and the business has moved.

Thwaites has awarded the demolition contract for its old brewery site, which will take just over a year to complete.

The firm’s tenanted pubs have had an excellent first half to the year as a result of sustained investment over several years.

Average earnings per pub has risen, by 14%, with like for like turnover up by five per cent and operating profit up by seven per cent.

Thwaites completed 12 investment schemes in the first half of the year, investing £1.7m.

Major refurbishment schemes have been carried out at The Red Lion, Wybunbury, The Millstone, Darwen, The Holcombe Tap, Ramsbottom and The Queen Anne in Bury.

Thwaites Inns had a good summer, with turnover up by 27% and operating profit up by 25%.

The major investments made last year at The Royal, Heysham; The Crown, Pooley Bridge; The Lister Barn, Malham; The Fleece, Cirencester and The Royal Oak, Keswick all contributed to the strong performance.

Thwaites sold five poor quality pubs for £1.6m, generating a profit of £200,000.

Hotels and spas sales for the first half of the year have grown by 1%, although on a like for like basis they have declined by 2% due to a softening in corporate demand.

Thwaites had to absorb some significant increases in government imposed costs; continued increases to the living wage, auto enrolment pension costs, business rates and renewable energy levies

Inflation caused by the decline in the value of sterling has led to food and utility increases. Consequently, operating profits decreased by 12% year on year.

When Thwaites sold its Free Trade business to Marston’s in 2015 it retained its investment in Funny Girls.

Over a number of years the brewery advanced loans to the business, secured over its freehold assets.

A statement read: “Funny Girls includes a cabaret venue, a nightclub and several bars based in the historic art deco Odeon cinema in the heart of the town; it is an iconic part of Blackpool’s nightlife.

“In September administrators were appointed to the business, which is now being marketed for sale. Since administration we have been operating the business under license, which may or may not become a longer term arrangement depending on the outcome of the sale process.

“Whilst it is our preference that a new owner be found to take the business forward, equally we are ready do so under our own stewardship should that be required. We expect that the position will be clearer by the end of the financial year.”

Chairwoman Ann Yerburgh said: “We have delivered on our goal to move from Blackburn town centre after over 200 years to our new home at Mellor Brook.

“This is a momentous change that should not be understated in our ambition to evolve our business for the future leaving behind our industrial past, whilst not failing to acknowledge its’ place in our heritage.

“These past six months have cemented the delivery of a longer term plan and there is much to celebrate.

“However, there is no doubt that the second half of this year will be a challenge, particularly in our hotels business, which is having to absorb cost increases that we are struggling to recoup through sales growth.

“Whilst I firmly believe that our business is in a strong position to move forward into the future, we face challenges to our trade, which are almost exclusively politically induced.

“For the time being our focus must move to making the most of our assets and tightening our operational performance. We expect continued volatility and uncertainty in the negotiations around Brexit, so we maintain a cautious outlook and will be watchful.”