Cains: Administrators appointed
Administrators have been appointed to deal with the sale of the Cains brewery and pub estate after discussions with its bank broke down.
PriceWaterhouse Coopers LLP has been appointed as administrators after shares in the Liverpool brewer were suspended last week.
Bank of Scotland refused to extend Cains facilities after it announced losses of £4.5m for the six months to 28 April.
A statement from Cains said: "In the announcement of Friday 1 August, the Company stated that it was continuing discussions with its bankers Bank of Scotland. The Board regrets to announce that it has been unable to successfully conclude those discussions and accordingly the Board has determined that it would be appropriate in the circumstances to place the Company in administration with immediate effect."
David Chubb, Ian Green and Craig Livesey of PricewaterhouseCoopers LLP have now been appointed as joint administrators and have vowed to continue to operate the brewery and pubs while a buyer is sought.
Cains undertook a £37m reverse takeover of Honeycombe Leisure in May 2007, which saw Cains acquire 92 pubs, and a listing on the Alternative Investment Market.
The Bank of Scotland provided £40m, of which £30m was a loan facility, £5m in working capital and £5m to fund refurbishment of the pubs.
Cost of servicing the interest on debt amounted to £1.2m in interest for the most recent six month period, compared with just £66,000 a year ago.
The total estate of 102 sites includes 76 leaseholds and 26 freeholds.
"It is currently our intention to continue to trade both the brewery and pub chain businesses and we will seek to achieve going concern sales over the coming weeks and months," said Chubb.
"We have already received some early indications of interest and we would also invite any parties interested in acquiring either the brewery or pub chain businesses to contact us as soon as possible."
The administrators are working with staff at the brewery and in the pubs to ensure they remain open. Negotiations are also on-going with key suppliers.
Prospective buyers should contact Jon Nuttall or Jonathan Hall at PricewaterhouseCoopers on 0161 245 2225.
