The collapse of licensed operators Cains and Food & Drink Group is unlikely to mark an end to the pub industry’s escalating casualty list, according to an expert.
Cains, which lost the backing of its bankers after recording a £4.5m loss last month, has been placed into administration and its 100-strong estate is up for sale along with and 900 employees.
Food & Drink, which owns Henry J Beans, has already seen administrator BDO Stoy Hayward sell 17 of its bars, but a lack of trade interest in 11 more has resulted in closure and 125 redundancies.
David Thurgood, director of Grant Thornton’s recovery and reorganisation practice, which handled the administration of Massive Pub Company earlier this year, said: “Certainly the pub trade is going to continue to see a difficult environment for this year and into 2009.”
His comments come after Michael Turner, chairman of Fuller, Smith & Turner, said: “I’ve seen some serious downturns but I’ve never seen the same collection of negative effects in the industry all happening at the same time.”
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By Christopher Walton
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