Administrators shut loss-making pubs at Cains

Administrators have begun to shut loss-making pubs in the estate of Liverpool-based Cains Beer Company but still hope to find a buyer, it was announced today.
 
News of the closures is the latest sign of the grim trading conditions facing the pub sector.
 
PricewaterhouseCoopers, which was appointed administrator for the pub group ealier this month, said the pub closures will likely be completed by next week.
 
A PwC spokeswoman told Caterersearch said administrators are producing a short list of possible buyers for the pub group, which employs 900 people with a further 100 staff working in the Liverpool brewery.
 
PwC said in a statement: "The challenges faced by the pub sector are well known and consequently, it is not surprising that within the Cain Group portfolio, there are loss-making pubs which are not likely to realise any value for the creditors in the administration. We regret that staff at the loss-making pubs are being made redundant."
 
Cains appointed PwC as administrators after discussions with Bank of Scotland broke down.
 
Cains lost the support of its financial backers after it made a £4.5m loss in the first six months of the year and also owed outstanding duties to HM Revenue & Customs, facing a winding up order.
 
Cains Beer Company was formed in May 2007 when Robert Cain & Co Brewery entered into a reverse takeover of 100 strong pub estate Honeycombe Leisure.

Pub group Cains call in the administrators >>

Cains Beer Company looks for family backing to save pub chain >>

Cains looks for further funding to stave off collapse after £4.5m loss >>

Cains pub company confident despite losses >>

By Nick Huber

E-mail your comments to Nick Huber here.