Private equity firms circle Premium Bars
Industry sources report that a private equity player has approached former Premium Bars and Restaurants (PBR) boss Mark Jones about buying key assets from his former company.
Jones, who left the business in October last year, is believed to have been approached after the troubled company has been given short-term funding by its banks on the basis that it seeks a a buyer for some or all of its assets.
The move amounts to an enforced fire sale of PBR's assets, which includes the Bel and Dragon pub chain and the Living Room chain of bars. Industry sources suggest that Living Room founder Tim Bacon has also been approached by a private equity fund about buying PBR's best assets.
BDO Stoy Hayward, who has been advising on PBR since last year, is expected to draw up an Information Memorandum on the business and its assets. One source suggested that PBR's banks may look to swap their debt for equity in the business if the fire sale is unsuccessful.
Another observer believes that the bank's ultimatum on selling assets may be an attempt to force majority shareholders, the Reuben Brothers, to put more cash into the business.
A statement by PBR said: "This funding is made available for a period of up to 12 weeks on the condition that the company embarks on a process whereby the company's business will be marketed with the intention of a sale of some, or all, of the company's assets taking place at the end of this process.
"The board will continue to review contingency plans in the event that a sale or sales cannot be achieved on suitable terms. The Company has appointed advisors to assist the Company in determining the best option, or a combination of options, to maximise value in the PBR group of companies going forward."
PBR's also changed its mind on whether it can issue interim results. Last week, it said it weould release results in the "next few days". On Friday it stated: "Given the current circumstances, the Board is not in a position to release the Company's interim results for the six months ended 31 December 2008 or its accounts for the 12 months ended 30 June 2008 at this time."
