The owner of the Living Room on Broad Street – a favourite drinking hole of footballers – has been placed in administration following the collapse of a sale to its major shareholder.
BDO Stoy Hayward has been appointed administrator for Premium Bars and Restaurants (PBR) and all its subsidiaries which include The Living Room, Bel & The Dragon, Prohibition and the Ultimate Leisure chain of bars and restaurants.
The firm was appointed after negotiations to sell the company to the Reuben brothers – who also own racecourse firm Northern Racing – were called off after talks collapsed over what was reported to have been a £48 million deal.
The Reuben Brothers are a major shareholder in PRB – holding 32.5 per cent of the company which started life in the North East as 1997 as Ultimate Leisure Group.
AIM-listed PBR has 48 outlets throughout the UK and Ireland including a branch of The Living Room on Broad Street.
BDO Stoy Hayward is closing three venues in PBR’s portfolio – Advocate in Belfast, Sea in Glasgow and Rewind 31 in Newcastle – but said it would keep the remaining 45 outlets open, including in Birmingham, while it looks for a buyer.
BDO Stoy Hayward business restructuring partner Dermot Power was optimistic about the level of interest among potential buyers for the group.
He said: “All of the names in the Premium Bars and Restaurants Plc portfolio are well known on high streets throughout the UK and Ireland.
“The outlets continue to attract loyalty from their wide customer base.
“The sudden and sharp economic downturn has impacted on the usually high disposable income of the group’s target market. These customers have begun to select the weekend for their discretionary spend. This shift has impacted significantly on a business with high fixed overheads.
“We are currently in discussions with several interested parties and are confident of securing a sale of the business.”
The founder of The Living Room Tim Bacon is reported to be one of the parties interested in buying back some of the business as well as the group’s former and current management and Ladhar Leisure, a bar and lap-dancing club owner.
Trading in PBR’s shares was suspended in December and the firm agreed a refinancing package with its banks earlier this year.
The group, which employs a total 1,800 staff, last year reported a pre-tax loss of £21.4 million including £20.5 million of one-off charges.
