Duff & Phelps appointed administrators to two pub companies
Steven Muncaster and Sarah Bell, from the Manchester office of business adviser Duff & Phelps, were appointed joint administrators of Mitchell’s of Lancaster (Brewers) Limited, and York Brewery Co Limited, on December 12.
Mitchell’s acquired York Brewery on December 9, 2008, with big expansion plans, and continued to operate it as a separate company.
Running 10 public houses in Lancashire, Mitchell’s was originally founded in 1871 by William Mitchell after he signed the lease on his very first pub and brewhouse, The Black Horse Inn.
The company has remained family-owned over the past 140 years and has retained family traditions and core values for great service and quality cask ales.
Its Lancashire properties include the pubs Fibbers, The Duke of Rothesay, The Old Hall, The Tithe Barn, The Water Witch, The William Mitchell, The Bobbin, The Station Hotel, restaurant and bar 1725, and pub and hotel The Royal Hotel, which, when combined employ around 120 people.
On appointment, 14 staff were made redundant at the head office.
All establishments are continuing to trade while Duff & Phelps seeks a buyer.
Steven Muncaster, managing director of Duff & Phelps Manchester, said: “The UK pub sector has suffered sustained adversity over the last decade, with the latest ONS statistics showing that nearly a quarter of pubs have closed since 2008, with the majority of these closures being small pubs.
“This troubled landscape, coupled with rising business rates, increased minimum wage, and the continued uncertainty surrounding Brexit, has created difficult conditions for pubs across the UK.
“As such, the owners were left with no alternative but to put the company into administration.
York Brewery Co Limited was established in 1996 within the historic city walls.
It is both a working brewery and a major tourist attraction providing customers locally, and around the country, with the first traditionally brewed ales from within the walls of York for more than 40 years.
In addition, it operates four public houses, The Last Drop Inn, Mr Foley’s Tap House, The Three Legged Mare, The Yorkshire Terrier, which was put up for sale in September, and a brewery tap room.
The brewery and associated pubs continue to trade while Duff & Phelps seeks a buyer and there has been no redundancies made to the workforce of 49 staff.
Steven Muncaster said: “While York Brewery is a popular destination for both locals and tourists, the company has unfortunately continued to face cashflow pressures as a result of difficult conditions which are affecting the leisure industry and pubs across the country.”
He said the joint administrators are seeking a buyer for both companies and encouraged any interested parties to come forward.
