Thwaites converts managed pubs to lease

Lancashire brewer Daniel Thwaites is to convert 37 managed pubs to lease and tenanted operations in a bid to "simplify its business."

A further five managed pubs with letting bedrooms will be transferred to the company's hotels division.

The move could see as many as 80 jobs lost comprising 55 pub managers and 31 head office posts and a consultation period with staff will now begin.

It will mean the end of managed pub operations for Thwaites which expects to make substantial cost savings from the move.

Managing director Peter Morris said:"Lower business volumes and exceptional cost increases have combined to cause unprecedented pressures on profitability.

"We are also mindful that market conditions may well deteriorate further before we see any signs of improvement."

Morris said the Thwaites Board proposed a number of rationalisation and cost reduction measures to ensure the company remained competitive.

"We are looking to simplify our business model and this proposed re-structuring will re-align costs more closely to our likely trading levels," he added.

Morris said many of the managed houses were "stonking pubs" which weekly turned over five figures sums.

"Unfortunately the costs of running a managed house estate are very high and we have been forced to reduce these company overheads.

"A substantial number are very good trading houses which will make excellent leased or tenanted businesses," he said.

Morris said existing managers may get the chance to take on their pubs as tenants if they proved they were able to make the switch to self-employed licensees.