Wessex Taverns put into administration

North-east pub and bar operator Wessex Taverns has slipped into administration after cash-flow problems.

The company, based in Whitley Bay, Tyne & Wear, owns 32 pubs and bars, including flagship sites such as Pacific Bar in Newcastle city centre and Bob Trollop's in the Quayside area.

The business, which has been led by managing director Keith Liddell and finance director Kamran Aziz, is being traded by administrator Grant Thornton, but two outlets have been closed.

Wessex Taverns is highly geared and has seen particular sales pressure since the New Year. It owns a mixture of freeholds and leasehold sites, such as the four-strong Hairy Lemon chain, village inns and pubs with rooms.

Grant Thornton administrator Joe McLean said: "The group has a structure comprising a number of businesses.

"I was appointed to some of them, but now the entire group is in administration.

"My first objective is to stabilise the business and ensure it runs as normally as practicable. "I'm hopeful we can find a constructive way forward."

A source told the Morning Advertiser: "The company seems to have had several refinancings. The company has some very good sites, but seems to have struggled with cash flow."

Wessex, which has around 420 full-time and part-time staff, moved to strengthen its management last year with the appointment of former Pubmaster boss John Sands as a non-executive director.