The Living Room owner saved by Orchid Group
STRICKEN leisure chain Premium Bars & Restaurants has been bought out of administration by managed pub operator Orchid Group safeguarding 1,500 jobs.
Hale-based Premium Bars collapsed into administration in August after failing to successfully refinance its £40m debt.
St Albans-based private equity backed Orchid is the country’s largest independent managed pub and restaurant operator has bought all 43 sites.
The acquisition includes The Living Room and Prohibition brands as well as a number of bars, restaurants and nightclubs.
Orchid said it plans to invest £3m in the business over the next 12 months. Other plans include the closure of the Hale head office but the re-opening of the former HQ in Newcastle.
Chief executive Rufus Hall said: “This purchase further cements Orchid’s commitment to growth, and we are delighted to have completed what is an important development for the business.
“The acquisition of Premium Bars & Restaurants is an exciting move for us with their well placed city centre locations. This deal will save hundreds of jobs and also provide significant investment right across the UK.”
The administration was handled by the Manchester officer of BDO.
The business generated high levels of interest due to its strong brand names and had been expected to be bought by major shareholder the Reuben brothers, but a reported £50m deal feel down after a row with PBRs’ bank Royal Bank of Scotland.
Orchid, which is owned by GI Partners, is no stranger itself to turnaround situations having gone through a pre-pack administration last year.
Orchid was formed in 2006 when GI, a US-based firm bought 290 pubs from Punch Taverns for £571m. But like PBR – which was formed when AIM-listed Ultimate Leisure bought the Living Room chain – it struggled under the weight of debt amid a severe trading downturn.
