The administrators handling the sale of London’s Massive Pub Company have warned that the licensed trade could see further failures this year as consumers spend less.
Speaking to Caterersearch, David Thurgood of administrators Grant Thornton, said:
“The licensed trade will have a difficult year for all the same reasons that Massive had cash-flow pressures. Other operators will see similar pressures as they are not getting the footfall needed to meet ever rising overheads.”
Massive was placed into administration yesterday due to the combined impact of the smoking ban, rising wage and utility costs and declining consumer spending for the failure.
It’s portfolio of 35 pubs, which are still trading, now face the prospect of being split up and sold individually. The Castle Now in Barnes, south-west London, has been closed.
Thurgood said: “I am advertising that these units are up for sale but they will continue to trade until they stop making a positive contribution. We will have to wait a couple of weeks to see what the level of interest is.”
Ahead of administration Massive had been hoping to sell a package of sites to Sports Cafe, which was itself rescued from administration last week.
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By Christopher Walton
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