Orchid Group rescues 43 Premium Bars and Restaurants sites

The Orchid Group, the managed pub chain, has rescued 43 Premium Bars and Restaurants (PBR) sites from administration.
 
The deal, which followed the announcement in October that Orchid was in “advanced discussions” over a potential deal, sees all but four of PBR's estate move over to Orchid including 13 Living Room sites, four Bel & The Dragon food-led pubs and three Prohibition bars. Orchid will also re-open PBR’s Newcastle head office. 
 
The purchase, the value of which was undisclosed, brings Orchid’s estate to 292 and will save “hundreds of jobs”, according to chief executive Rufus Hall. Over the next 12 months, Orchid intends to roll out a £3m capital investment programme across the PBR estate, he added.
 
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.
 
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, which is backed by private equity firm GI Partners, was itself placed into administration last December, before being immediately rescued via a management buyout and a financial restructuring. 

 
The PBR deal marks Orchid’s second distressed assets purchase this year, after it took Bar Room Bar’s profitable sites out of administration six months ago.

 
Premium Bars & Restaurants tight lipped on reports of Reuben brothers £40m bid >>
 
Reubens blame banks for failed sale of Premium Bars and Restaurants >>
 
Sale of Premium Bars and Restaurants collapses >>
 
Losses rocket at Premium Bars and Restaurants >>
 

By Daniel Thomas

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