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News Article Comments : Cains future decided in next 48 hours
The future of Liverpool brewer Cains will be decided by its bank, the Bank of Scotland, in the next 48 hours.
Cains is in breach of its banking covenants and executives at the Bank of Scotland are considering its future.
The brewer, though, insists it doesn’t need new money – it simply requires the Bank of Scotland to honour existing overdraft facilities.
Cains faced a winding up order up from HM Revenue and Customs but has now agreed to a repayment plan on its outstanding tax liabilities.
Chief executive Sudarghara Dusanj told the Morning Advertiser: “We need the bank to take a long-term view.
"The bank has got to be a partner with us – not just a lender. Customs have come back to us with a fair deal. We have breached some covenants, which has put our facilities under review.
"But this is a good business – turn-arounds don’t happen that quick. We are 17-18% up on the brewing side and the pubs are trading in line with the market – they were trading 15% down but have now
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Shaun Rennison 29/07/2008 13:19:42  |
RE: Cains future decided in next 48 hours Hopefully the banks will see sense and support the efforts of the owners in refurbishing and re-developing the business as a whole. Great Pubs will always be Great and with some stability in terms of sales currently it remains to be seen if the board can pull it off. Keep striving for the best and I do hope that the banks get behind you. Shaun Rennison. President FLVA This post replies to this thread |
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edward carpenter 29/07/2008 13:22:17 |
RE: Cains future decided in next 48 hours " The banks have to be a partner with us and not just a lender" Chickens coming home to roost. Lets hope Enterpunch suffer a worse fate,then they`ll understand what lack of partnership means,as their lessees have suffered for years. No axe to grind with Cairns by the way,just thought the quote ironic and apposite in the extreme. This post replies to Shaun Rennison > RE: Cains future decided in next 48 hours |
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| Chris Whirledge 29/07/2008 13:41:27 |
RE: Cains future decided in next 48 hours Shaun, I echo your sentiments and find it disappointing that people can use such news to point score. I would hope that the Bank will recognise that the best value available to them is to support Cains rather than commence a fire sale, which is unlikely to achieve any where close to current book values. A more strategic approach to disposals should be implemented over the medium term, and I wish Cains the best of british in these hard times that we are all sharing in. This post replies to Shaun Rennison > RE: Cains future decided in next 48 hours |
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| edward carpenter 29/07/2008 16:15:11 |
RE: Cains future decided in next 48 hours Obviously went way over your head chris. This post replies to Chris Whirledge > RE: Cains future decided in next 48 hours |
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D.Smith 29/07/2008 18:16:05 |
RE: Cains future decided in next 48 hours Chris I would have thought that your market was very bouyant. I find it rather disappointing for you, as there are so many pubs up for sale! But I do agree with you that Cains should be assisted before they get eaten up by a Pubco and the brewery hived off - sold and then closed! They have been brewing since 1850 and whilst the company is not in the hands of the family, the new owners seem to have carried on with some tradition... Sorry just re-read your post and you were not suggesting assistance but a more strategic approach for disposals... This post replies to Chris Whirledge > RE: Cains future decided in next 48 hours |
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| edward carpenter 29/07/2008 19:55:26 |
RE: Cains future decided in next 48 hours Lets hope they can ride this and retain indepedance. This post replies to D.Smith > RE: Cains future decided in next 48 hours |
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| william taggart 29/07/2008 23:44:09 |
RE: Cains future decided in next 48 hours silly move to leverage the buying of honeycombe, a lot of people at the time thought it was unwise to enter a business with the partners having no real experience of it-a pub chain is a lot different to a cash and carry..the banks now wouldnt even give them the money to refurbish a toilet. This post replies to this thread |
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| Chris Whirledge 31/07/2008 17:39:13 |
RE: Cains future decided in next 48 hours Mr Smith, I agree with you and Edward, it would be nice to have the company remain an independent brewer. The strategic approach to disposals was to hold for the moment and dispose of SOME pubs in future at a fair price to ease liquidity and retain independence. I have noticed that readers can interpret comments differently and I will try and make myself clearer in future. This post replies to D.Smith > RE: Cains future decided in next 48 hours |
