News Article Comments : Mercury Inns in administration

RE: Mercury Inns in administration

So "Its pub management arm, Mercury Management, and its distress recovery arm, Mercury Liquid, which has been contracted by Enterprise Inns at a number of pubs, are also unaffected by Mercury Inns going into administration"?

How have they been made the administrators or their own company? Isnt this but a prepack under a different guise?but it would appear that in this case the management arm get to keep the administration costs.

Another view of this is they are called in to run Enterprise pubs as a management company and whilst their own pubs have gone into administration. Doesnt this make a mockery of the previous statement regards these management/holding companies? I seem to recall that they were brought in to run places properly were publicans had failed and been turfed out. I beleive that the business failures had been put down to the publicans and when the holding companies came in everything improved. Maybe just maybe things improved because these companies did not have to pay the rents or beer prices that the exiting publican was obliged to?

edited by: info man at: 25/11/2009 12:24:47

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RE: Mercury Inns in administration

BDO Stoy Hayward are the administrators. What I understand from this is that pubs previously owned and run by Mercury Inns, are now owned by BDO Stoy Hayward and run by Mercury Management, which is presumably a separate company from Mercury Inns (although may well be owned by the same people).

However, yet again it seems the only people being given a chance to buy the assets from the administrators are the current failed managers of the failed business - why is this allowed?! How can the administrators be sure they're getting the best value for the creditors without having investigated any other options?

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Mercury Inns in administration

I have to say that you have managed to drag me out of many years on the sidelines to respond, so at least well done for that. But as for the vitriol that I have read - enough.

Let me start by saying that I know Mark well and have been a supplier to him over the years, he knows nothing of this post and nor has he or anyone related to him asked me to do this.

This is NOT a fly by night company, nor are they some greedy relatives of the Rover Pheonix Four. The business was going for twelve years - TWELVE years. If they wanted to grab the cash - they would have done it two years ago, when valuations were at their highest.

They themselves have invested massively in their estate, are superb operators and should be rightly proud of the business they had built. I am confident in saying that the whole team will be devastated in seeing their business be taken away from them.

As for them trying to get it back. Why wouldn't anyone who cared for their pubs, not want to search every avenue to find a way of getting them back?

Yes there are sharks out there keen to start a business, rack up huge debts and then rip the heart (cash) out of it - leaving many suppliers out of pocket and the staff searching to pay their own mortgages - these guys are not sharks. Their business has failed and they are doing what they can to dust themselves and get back to doing what they do best - running great pubs. I, for one, feel that the licensed sector is a better place with these excellent operators in it.

This post replies to WhiskeyGalore > Mercury Inns in administration

Mercury Inns in administration

Good that someone is able to respond with more depth. From their website Mercury pubs look very well cared for. Sounds like that bounced back lease at £100K a year might have been a bit of a massive problem. It would be interesting to know where the debt that toppled them came from and if their tied pubs caused more difficulty than the free of tie.

This post replies to Jason W > Mercury Inns in administration