Administrators warn of a bumpy ride ahead

The news that brothers Sudarghara and Ajmail Dusanj had bought Cains Beer Company back out of administration caused a mighty kerfuffle.

Many wondered how the same people who operated the company when it collapsed could be in with any chance of getting it back. Even those familiar with the administration process conceded that such a move can look to the layman somewhat… strange.

But the duty of the administrator, in this case PricewaterhouseCoopers (PwC), is to realise the best return for the collapsed company's creditors, and to see if the business can be saved for the good of those still working for it. The Dusanjs were alone in offering to run the business as a going concern. Had it been sold to other interested parties this was unlikely, according to PwC.

The pair chased the dream of being part of the UK's pub and brewing world with gusto. But gusto is plainly not enough and they will surely bear this in mind in the future. While those who employed Cains to package their beers appear willing to stick around, the brothers face a struggle to persuade some suppliers to work with them again.

Meanwhile, PwC suggests demand for its restructuring services will grow from more and more businesses in the licensed trade.

It is not hard to conclude that in the coming months we'll likely see an increase in the number of pre-pack administrations, where companies go under and the best bits are immediately bought back by the old owners, as happened with Laurel Pub Company earlier this year.

So despite the likes of Mitchells & Butlers grinding out a decent enough performance in the current market, elsewhere the casualty rate is surely set to rise. A growing number of operators fear there is worse to come. Sadly they may well be right.