BusinessBusiness RecoveryAdministrator begins sale of Cain pubs

Administrator begins sale of Cain pubs

PwC did not disclose the locations or the number of pubs what would be affected by the closures until staff had been informed

PricewaterhouseCoopers, the administrators of troubled Liverpool brewer
Cains, have begun to shut down loss-making pubs that belong to the chain.

PwC did not disclose the locations or the number of pubs what would be
affected by the closures until staff had been informed.

The challenges faced by the pub sector are well-known and, consequently, it
is not surprising that, within the Cains Group portfolio, there are loss-making
pubs which are not likely to realise any value for the creditors in the
administration.

‘We regret that staff at the loss-making pubs are being made redundant.

‘We continue to trade the remainder of the business and are dealing with
numerous parties who have contacted us expressing interest in the group,’ the
administrators said in statement.

Cains has been trading as a going concern since it entered administration a
year ago on August 7, the
Liverpool
Daily Post Business
reported.

The acquisition of 92 more pubs – when it purchased Honeycombe Leisure in a
£37m reverse takeover – to its portfolio last year left the chain with heavy
borrowings, coupled with a slowdown in the pub sector.

The brothers Sudarghara and Ajmail Dusanj – who purchased Cains in 2002 – are
understood to still own several pubs.

More than 50 companies have expressed interest in the pubs. The
administrators are expected to name a serious bidder next week.

Further reading:

PwC hopes to find buyer for Cains soon

Tax bill forced brewery administration

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