Barracuda buys seven Old Monk sites for £7.8m
Barracuda has bought seven sites from the collapsed pub operator Old Monk Company for £7.8m.
The managed business headed by Mark McQuator swooped for the sites after Old Monk was placed in the hands of administrators a month ago.
In addition to the Old Monk branded pubs, the failed company also ran Springbok sports bars - large-scale venues with a South African theme.
The deal saw Barracuda buy three Springbok sites, in London, Manchester and Newquay and four Old Monks, in Liverpool, Newport and two in London. "It's the ideal scenario - we have cherry-picked the ones we wanted," said Mr McQuator.
"There are some very cheap deals around at the moment - I have never seen a market like this. If you can, now is the time to buy."
"It's a period of consolidation in the industry at the moment and there will always be winners and unfortunately, losers," he added.
Barracuda is backed by Royal Bank of Scotland - the bank that called time on Old Monk. It was founded by Gerry Martin, younger brother of JD Wetherspoon chairman Tim Martin.
The acquired sites have average weekly sales of £22,000 - £8m a year - and annual profits of £1.9m. The deal will lift Barracuda's group sales above £80m-a-year.
It will convert the sites through the course of the year to its brands. It operates entertainment-led venues called Barracuda Bars, upmarket pubs under the Smith & Jones banner and the student-focused concept Varsity that it bought from Wolverhampton & Dudley last year.
In addition, the group plans to open 23 bars in the next 11 months.
Related articles:
Old Monk calls in receivers after crisis talks with bank fail (7 October 2002)
Eight sites go in Old Monk "fire-sale" (24 September 2002)
Old Monk Company on brink of collapse (19 September 2002)
