Massive in administration
Massive Pub Company, the London multiple lessee, has been placed in administration with Grant Thornton.
The move comes after the collapse of sale talks with the Sports Cafe chain, which is rumoured to have planned to pay £13m for 25 of Massive’s best sites. Massive is understood to have an unpaid six-month PAYE and VAT liability of around £2.5m.
Her Majesty’s Revenue and Customs (HRMC) had held off on pursuing the debt pending the sale to Sports Cafe.
A source said: “Massive was trying to dispose of assets to clear the debt. The market, though, was moving away from the deal and the situation.”
A total of 34 sites have been placed in administration - 14 sites are on Unique leases, one is a Punch pub, two are leased through Scottish & Newcastle Pub Enterprises and the rest are free-of-tie leases.
The 34 pubs produced underlying ebitda of £3.5m. It is believed that Massive founder Peter Linacre and his management team are hoping to buy some of the sites out of administration.
A source said: “The company had high levels of financial and operational gearing. The problems were worsened by a downturn in trade in 2007. Two or three big sites in particular didn’t live up to expectations.”
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