PwC administrators to help pub chain
Over 300 London Town bars in administration after breaking debt covenants
Administrators from
PwC are
taking on the financial restructuring of pub chain
London
Town and its subsidiaries.
Mike Jervis and David Chubb were appointed to the operator of 350 pubs all
under lease or through direct management of pubs.
A statement by the administrators said the business had experience difficult
trading conditions and had been unable to make its debt covenants. As a result
the company was placed into administration as part of a financial restructuring
of the group.
Chubb, partner at PwC, said: “In order to avoid immediate closure of the 44
leased pubs in GRS Inns Limited, we have negotiated a short term management
contract and hope this will allow time to attempt to secure the longer term
survival of these pubs.”
“This has been a particularly complex restructuring but we are pleased to
have preserved the majority of the business, and therefore jobs, through the
transactions we have completed,” he added.
Jervis and Chubb have “disposed” of the managed services and managed pub
business to a new investment group headed up by the existing management.
Further reading:
PwC
and Chantrey Vellacott team up in administration
Virtual
meetings could save creditors’ cash and IPs bruises