M&B franchisees table pub bids
A number of Mitchells & Butlers (M&B) franchisees are tabling bids to buy their freeholds as today's deadline for "full and final offers" arrives.
Paul Thompson, of Acorn Commercial Finance, said he has received 20-plus enquiries from franchisees on how to fund an acquisition.
He said: "There are lots of bids in different stages and some bids will be going in today. One month's notice was given by M&B on this, which is not a particularly generous timescale for a private buyer.
"One client who wants to bid for his pub had a two-week holiday booked for two days after the M&B announcement.
"Some pubs have an asking price against them, others don't. Quite a few are putting in a bid not backed up with funding at the moment — and there is no indication on whether this is acceptable.
"M&B has also indicated that it is not sure when it will come back on bids because of the number involved."
One franchisee told the Morning Advertiser earlier this month: "There is no priority for franchisees but I was told that if my bid is ahead of the market value I could well get it.
"We are getting the chance to acquire the freehold although M&B is obviously keeping its options open."
Non-core assets
The company has just under 90 franchised pubs with an average weekly turnover of around £13,500 per pub per week.
M&B has decided its franchise division is non-core as it seeks to double the size of six key drive brands within five years.
Chief executive Adam Fowle told the Morning Advertiser: "We have no ideological issue about selling pubs in singles.
"It's obviously easier selling pubs in groups but it's about getting best value where were can."
The franchise division's pubs are the best quality package of tenanted pubs in the sector with turnover between two and three times the tenanted sector average.
It has a number of pubs in the Home Counties where turnover is as high as £40,000 per pub per week.
Existing franchisees include some of the sector's best known multiple retailers: Paul Salisbury and Paul Hales, of Lovely Pubs, Nick Pring and Malcolm Heap, of Realpubs, Chris Gerard of Innventure, Jon and Paula Briscoe, of Esp8, and Chris Bulaitis of Ever So Sensible.
