London Town pub group placed into administration

22nd February 2010, 10:32am

London Town pub group, which operates around 350 pubs, has been placed into administration, according to PricewaterhouseCoopers LLP.

The company will undertake financial restructuring and this will include one of its subsidiaries, GRS Inns Limited.

In a statement, the administrators said: "In common with other companies in this sector, the business has experienced difficult trading conditions and has been unable to meet its debt covenants and other obligations. As a result the Company was placed into administration as part of a financial restructuring of the group.

"This restructuring has resulted in the disposal of the managed services and managed pub businesses to a new investment group headed by the existing management - which has also taken over most of the existing staff."

The administrators have appointed Christie & Co to seek buyers for the pubs and will seek to negotiate with landlords to keep as many of GRS Inns trading as possible.

As part of this restructuring, and in order to avoid immediate closure of any of the 44 leased pubs in GRS Inns, an agreement has been reached with the new investment group (headed by the existing management) which allows the pubs to continue to trade for a short period whilst a marketing process is undertaken, thus preserving jobs in the short term.

David Chubb, partner at PricewaterhouseCoopers LLP and joint administrator of London Town Plc said: "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.

"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. All the pubs are on the market and we would ask interested parties to contact our agents Christie & Co."

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Michelle Anderson

22 February 2010 at 2:23pm

Having read the above article reference London town can you enlighten me on weather the Caretaking business which was part of the managed division is up for sale or negociation as I am interested in this part of the business. Regards Michelle Anderson

david parkinson

23 February 2010 at 10:50pm

Yet another case of incompetence of holding come management companies out for profit and bugger the local trade.

dave raw

25 February 2010 at 5:47pm

sirs,why dont you sell electric ciggies in your pubs? they are legal to use indoors and it would bring trade back into your pubs. i've got one and they are just like an ordinary cig but no smoke no smell no tobacco tax,beat the government and bring trade back.

Steve

26 February 2010 at 2:10pm

Yet another case of shareholders being duped !!!!

Moi

29 June 2010 at 4:03pm

Very strange they were taking money off shareholders until the supposed delisting from the LSE and re-listing on Aim and suddenly went into administration. To date as a shareholder I have not even been contacted by this company.

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