Threshers sites to revert to Whitbread

Whitbread, the hotel, pub and coffee-shop operator, could be forced to take back a clutch of Threshers stores in the wake of the collapse of First Quench, the off-licence shop and convenience store operator.

M&C Report understands the company, which runs Premier Inn, Costa Coffee and a clutch of pub-restaurant formats, is in line to take back some closed stores as it used to own part of the business.

Administrators from KPMG were appointed to First Quench Retailing, which operates 1,200 stores under brands such as Threshers, The Local, Wine Rack, Bottoms Up, Haddows and Victoria Wine, two weeks ago.

KPMG has already closed 373 stores, with the loss of more than 1,800 jobs but it is understood that an unknown quantity of the shut shops could revert back to Whitbread, the Beefeater and Costa Coffee operator - as it used to own the Threshers brand.

Samuel Thresher founded the Threshers chain in 1897. It was bought by Flowers Breweries in the 1950s and became part of Whitbread in 1962.

Whitbread then merged the off-licence chain with Allied Domecq's Victoria Wine in 1998 to create First Quench, which was bought by private equity firm Principal Finance Group for £225m in 2000.

The pub and restaurant company is understood to be waiting to hear from administrator KPMG on how many of the shut stores' leases will revert to them.

A spokeswoman for Whitbread said: "This is something we have been aware of for some time. We will only get back sites of those stores that are shut but we are waiting on the administrators to get back to us on the number and will no more in the fullness of time."

KPMG is believed to have been inundated with requests about small parcels of stores, although it is thought that there are five main bidders interested in a larger group, including a mixture of trade buyers, private equity and distressed debt specialists.