Merchant Inns placed in administration
Merchant Inns, the pub operator founded by Robert Breare, has been placed into administration with Deloitte and its six pubs are now up for sale.
Administrators Deliotte said the decision was taken following the recent discovery of "unknown" financial liabilities.
Colliers Robert Barry has been appointed to market the sites which include the Talbot Inn in Ripley, Surrey.
Joint administrators Neville Kahn and Nick Edwards of Deloitte said the company had fallen into difficulty following the revelation of the unknown liabilities.
The administration follows the departure of Robert Breare, who was the executive chairman of Merchant Inns, who left after an argument with business partner Sir John Ritblat.
Colin Wagman took control of day-to-day operations, assisted by Michael Cohen, who recently joined the group as finance director after what was described by sources close to the situation as an "angry and fundamental dispute" over the performance of the company and future strategy.
Breare and Ritblat - who built the British Land business - teamed up to grow the freehold pub concern in 2007, with plans to expand the estate across the UK.
They formed Kamside, an investment vehicle, to purchase the five-strong portfolio for about £20m, including £10m of debt.
Joint administrator Kahn said: "It is our intention to continue to trade the business, with a view to selling each of the pubs as a going concern - they are of extremely high quality, in first rate locations and we are confident of finding a buyer in the near term."
