Talks continue for Premium Bars
ADMINISTRATORS handling the collapsed Premium Bars and Restaurants chain say they have received 100 expressions of interest in the business.
Premium Bars, which owns the Living Room, Prohibition and Bel & The Dragon brands, went into administration in August with bank debts of £50m after buy-out talks with leisure entrepreneurs David and Simon Reuben fell through.
The Reuben brothers, who are major shareholders, are understood to still be interested in the business.
Joint administrators at the accountancy firm BDO Stoy Hayward have since closed three of the chain’s sites in Glasgow, Belfast and Newcastle. But 45 continue to trade and employ around 1,500 staff.
In their report administrators said: “Interest has been for a combination of individual sites, brands and the business as a whole. It is still our intention to sell the business as a whole and we are presently in negotiations with a preferred party. At present we are unable to provide any further information regarding the potential sale.”
Royal Bank of Scotland and Allied Irish Bank are owed a total of £50m which is secured against the group’s freehold and leasehold properties. Unsecured creditors, including HM Customs & Revenue, are owed £3.4m but a payout is unlikely.
AIM-listed Premium Bars had its shares suspended in December 2008 after being unable to issue its full-year accounts for the year to June 30, 2008. Sales declined during 2008 and the group breached its banking covenants. After renegotiating these facilities it unveiled a £20.7m loss for the year to June 2008.
This reflected an impairment to the valuation of the freehold and leasehold properties and also on the goodwill, but it also followed two previous loss-making years. During 2009 the group negotiated new funding agreements with the banks while a buyer was sought. However on July 29 the Reuben brothers told the banks the talks had been terminated. Administrators were appointed on August 4.
