Provence closes managed pub division
Provence is closing its managed house division, Countrywide Inns, after heavy losses, the MA has learnt.
The division has been running an estimated 60 formerly tenanted pubs as managed pubs this year. Countrywide Inns, which is run by Provence founder Paul Kiely's brother Peter, is rumoured to be losing around £360,000 per month.
Seven office staff and six area managers have been given notice. Sources indicate that 50 out of Provence's 60 managed pubs have been given notice to close.
One source told the Morning Advertiser: "A lot of the managed pubs were taking just £1,000 or £1,500 per week - a number of pubs were losing in the region of £8,000 or £9,000 a month.
Unprofessional"The situation just did not stack up. It was just so unprofessional. Managers were being paid between £200 and £250 a week. They wanted to succeed but didn't have a chance. Many people will be on the street.
"I think Provence tried to run a managed division for reasons of ego. Certainly the management's knowledge of the industry wasn't good enough. Management wanted instant results but you can't make a pub take £10,000-a-week just like that. Some of the stock results were unbelievably bad - pubs could lose up to £1,500 in some months.
"It was impossible to know whether it was down to theft or drinks being given away or what. The main reason is that there were no management systems or control."
Provence was founded in 2000 and specialises in selling freehold pubs at auction with a leaseback to itself for 35 years. A survey in the Morning Advertiser this week revealed that Provence has raised around £70m at the auction market, click here for the full story.
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