Venues and jobs axed in Premium Bars failure
THE North West owner of the trendy Living Room bar chain appointed administrators today, after a rescue deal for the troubled business failed.
Hale-based Premium Bars & Restaurants, which has debts of more than £40m and has seen trading hit by the recession, had been set to be sold to multi-millionaire leisure entrepreneurs David and Simon Reubens in a £48m deal.
But the deal has been called off after the Reubens reportedly sought to alter the structure of the deal, to reduce the amount of debt they would have to take on.
Accountancy firm BDO Stoy Hayward was appointed administrator this afternoon and immediately closed three venues with the loss of more than 70 jobs.
Restructuring partners, Shay Bannon, Dermot Power and Tracey Pye are handling the insolvency.
Premium Bars employs a total of 1,800 staff across its portfolio. As well as the Living Room – which remains popular with footballers and celebrities – it operates Bel & The Dragon gastropubs, bar and grill concept Prohibition and the Ultimate Leisure chain of bars and restaurants.
In a statement BDO said: “The Administrators will seek to trade all of the remaining outlets while they work to secure a sale of the business. All retained staff will be paid any arrears of wages due to them.
Dermot Power, said: “All of the names in the Premium Bars and Restaurants portfolio are well known on high streets throughout the UK and Ireland. The outlets continue to attract loyalty from their wide customer base.
“The sudden and sharp economic downturn, and subsequent recession, has impacted on the usually high disposable income of the group’s target market.
“These customers have begun to select the weekend for their discretionary spend. This shift has impacted significantly on a business with high fixed overheads.
“We are currently in discussions with several interested parties and are confident of securing a sale of the business.”
The closed outlets are in Belfast, Glasgow and Cambridge. None operate under the Living Room brand.
It is thought that Living Room founder Tim Bacon as well as the Reuben brothers will be interested in buying the business.
