JOINT ADMINISTRATORS from FRP Advisory have been appointed to the operator of two pubs in Nottinghamshire and Lincolnshire after a downturn in trading put unsustainable pressure on the company.
Chris Stirland, partner and Nathan Jones, director at FRP Advisory were called into Fairway Investments P.P.C Limited, which traded as Atrium Bars, on 9 June after it emerged the owners were unable to refinance the business.
FRP secured a rescue deal for The Atrium in Newark, saving 15 jobs, while the Grantham-based bar is being marketed for sale.
A combination of declining turnover and margins coupled with a fall in capital values removed the ability for Fairview Investments to refinance the company under its current financial structure and left the directors with no viable options other than seeking the protection of administration while seeking buyers for the underlying pubs businesses.
Fairview Investments had high levels of debt to service, taken on to fund acquisitions of property-based assets in the pubs business which have yet to recover the capital values eroded since the financial crisis of 2008-10.
Nathan Jones, joint administrator and director at FRP Advisory, said: “We are delighted to have secured new owners for the Atrium in Newark to ensure this popular high street pub can continue to serve the array of drinks, quality food and all the regular club nights its loyal customer base expects and securing the jobs of 15 local jobs in the process.
“We continue to market for sale the Atrium in Grantham which trades as normal under the experienced direction of an experienced hospitality management firm, installed since our appointment, to ensure that the customer remains at the heart of everything this fine freehold pub has to offer.”
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