Any buyers on the look-out for bar or pub businesses could soon have a wide range to choose from, as the tougher lending climate is forcing an increasing number into administration.
In the third quarter of 2011, 13 bars, mainly outside London, went into administration. This was more than double the number that failed in the second quarter, according to the figures from restructuring firm Baker Tilly.
One of the most high profile cases came from the London-listed nightclub operator, Luminar, which fell into
administration in October after failing to meet its debt obligations to several banks.
In light of such cases, it’s not difficult to see why banks are cautious about lending to drink-led businesses. However, it seems that the lack of banks’ willingness to lend money to cash-poor operators, together with falling consumer confidence, is proving a lethal combination for many bars and pubs.
One of the main factors affecting bar operators is their reliance on the 18 to 24-year-old demographic, which has been severely hit by the recession and unemployment. The number of bars and pubs being put up for sale in the final quarter of this year and the first quarter of 2012 could well return to the kinds of figures we last saw back at the end of 2009.
This buyers’ market is bound to prove attractive to those looking for a new bar or pub project, with plenty of scope for success for those willing to diversify into food offerings or targeting a more mature clientele, for example.
This is an immaculate licensed restaurant which has recently closed. The venue can be re-established as catering premises or change of use Offering E class license and 5-star hygiene rating.
LEASEHOLD
Wholesaler to catering industry operating from large industrial premises in the region of 7,500 ft² with roller shutter doors, concrete floor, led lighting, and modern adjustable shelving. Additional forklift, 4 pallet pump trucks, and CCTV system (8...
For sale a double fronted eatery in the region of 800 ft² with electric shutters, industrial non-slip floor, suspended ceiling with spot and led lighting, sales counter, 2 x epos till, 3 x led menu boards, milkshake machine, drinks dispenser (on loan...
LEASEHOLD
Business Sale Report is your complete solution to finding great acquisition opportunities.
Join today to receive:
All this and much more, including the latest M&A news and exclusive resources
Please choose your settings for this site below. For more information please read our Cookie Policy
These cookies are necessary for our website to function properly and provide you with access to all features.
These are analytics cookies that help us to improve the way our website works.
These are used to improve the functional performance of the website and make it easier for you to use.