Orchid Group poised to snap up Premium Bars and Restaurants

The Orchid Group, the 250-strong pub chain, is in advance discussions to rescue Premium Bars and Restaurants (PBR) from administration.

PBR was placed into the hands of administrators at BDO Stoy Hayward on 4 August, after it was hit by the collapse of the late-night market and a massive fall in its market value – from £75m in April 2008 to £770,000 a year later.

BDO business restructuring partners, Shay Bannon, Dermot Power and Tracey Pye, have now confirmed they are discussions to sell the business and assets of PBR to Orchid, which is backed by private equity firm GI Partners.

An exclusivity agreement is currently being finalised and a sale is expected to complete in four to six weeks.

PBR, which employs a total of 1,800 staff, operates brands including The Living Room, Bel & The Dragon and Prohibition.

The announcement of the Orchid deal marks the end of a turbulent period for PBR that began with the departure of former executive chairman Mark Jones late last year.

In June, the group signed an exclusivity agreement with a potential buyer – rumoured to be the billionaire Reuben brothers - only for this to lapse.

Orchid itself was placed into administration last December, before being immediately rescued via a management buyout and a financial restructuring.

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By Daniel Thomas

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