Globe pubs "not struggling", says S&NPE

Sources close to Scottish & Newcastle Pub Enterprises (S&NPE) have denied reports that a large number of pubs within the Globe Pub Company estate, which it manages on behalf of owner Robert Tchenguiz's R20 group, are struggling.

Despite the challenging conditions in the UK pub market, "the vast majority of [Globe's 450-odd] pubs continue to perform well", an S&NPE insider claimed.

Weekend press reports had suggested that property tycoon Tchenguiz was set for crisis talks with R20's banks over Globe's trading and concerns that the value of many of its pubs had fallen dramatically.

The reports also hinted at a bust-up bertween R20 and S&NPE over the running of the estate.

However, a S&NPE source attempted to distance the Heineken-owned company from the reports.

Globe was not a joint venture between the two companies, the source said; rather it was a standalone company with a board in which S&N played no part.

Any speculation on debt restructuring, banking covenant defaults or its relationship with R20 were matters for the Globe board, the source added.

S&N supplied Globe pubs with beer and "managed the estate day to day," it said.

The brewer said it was "committed to the Globe pubs" and was managing them on a "proactive basis".

Next week Globe will publish details of trading in the three months to the end of November 2008.

A number of industry watchers are expecting further declines in the group's beer sales, following a 6.5 per cent fall in drink revenues in the quarter ending August 30, 2008.

R20 had not returned calls at the time of writing.