London Town enters pre-pack administration and puts 44 pubs up for sale
The future of 44 pubs in the London Town group is under threat after the company entered a pre-pack administration last week.
PricewaterhouseCoopers was appointed as joint administrator of London Town and one of its subsidiaries, GRS Inns on Friday.
A group headed up by London Town's existing management has bought the pubs business, taking over most of the existing staff, under a complicated restructuring deal.
London Town operates 350 pubs under lease and tenancy agreements or through the direct management of pubs, while GRS Inns operates 44 leased pubs.
Christie + Co has been appointed to find buyers for GRS Inns' pubs, which remain under the control of the investment group as part of a short-term arrangement until buyers can be found.
David Chubb, partner at PricewaterhouseCoopers and joint administrator of London Town 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.
"We would like to thank all the employees, landlords and suppliers to London Town for their support whilst we undertake this task over the next few weeks."
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By Neil Gerrard
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