Callaghan in talks over new Yesteryear rescue

THE boss of failed North West pub chain Yesteryear is in talks with receivers to buy back the remaining nine pubs.

Tony Callagahan, who rescued the business in January 2007 after a previous failure, is seeking to preserve the jobs for more than 100 staff who work at the troubled Wigan-based business.

Accounts for the year to the ned of August 2008  show a £736,295 loss on sales of £5.2m – down from £6.2m in 2007.

Steven Williams of Begbies Traynor in Preston, who was appointed joint administrative receiver of the business last week, said all the outlets were continuing to trade.

He said:”Yesteryear has been hit by the general slump in trade caused by the recession and it was also heavily geared having taken on fairly significant bank and brewery borrowings at the time of the deal in 2007.

“The turnover levels required to service the debts and maintain the business has not been achieved because of the recession and the company had cashflow issues.”

Mr Williams said a licence arrangement had been reached with another of Mr Callaghan’s businesses to allow the nine pubs – which are located in Wigan, Preston, Oldham, Chester, Lytham and St Helens – to remain open,

“This has maintained a going concern status for the sites and all staff have been retained. All 116 are currently still in a job and we’re in discussions with Mr Callaghan and one of his other companies with a view to a possible acquisition.”

Mr Williams said the discussions were still at an “early stage”.