Pub sale scuppered by last minute decision

Business sales can fall through for all kinds of reasons and it is always worth remembering that a lot of these are outside the control of both the buyer and the seller. The sale of a pub in Glebelands has recently demonstrated this point, with the plans scuppered at the last minute by a council decision.

Enterprise Inns was all set to sell Fairview Inn in Headington to an unidentified buyer when Oxford City Council designated the pub an 'asset of community value' at the very last minute. The decision resulted in the buyer pulling out of the sale and the business is now back on the market and local communities will be given the right to bid for it. The change in status will also protect the future of the business and restrict any changes in use.

Glebelands resident Darren Grant told the Oxford Mail: "It is very difficult to tell if we could raise that amount of money. We don’t know what our next move is yet. We will have a meeting of the residents’ association to see if we can make an offer.

"We knew from the start that it was not the buyer’s intention to keep it as a pub but this shows that community asset status has some teeth."

The pub was only built in 1959 but its popularity within the surrounding area contributed heavily to the decision to protect it.

While there is some relief for the buyer that in this case the problem was found before the sale went through, buyers need to be aware of the potential disruption that can all too easily befall an acquisition. The new owners could have found themselves constricted as to what they were legally able to do with the business if a decision were made at a later date regarding the company's community value.

Buying a business takes time, money and a good deal of research. But even when everything is in order, don't forget that you can't control all factors and the best a buyer can do is to be aware of and prepare for the inherent risks.

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