Wear Inns show Haway to growth
Recessionary times throw up opportunities, Part 47. Wear Inns was founded in February 2006 by ex-Pubmaster chairman John Sands and former Bass/Mitchells & Butlers retail director John Weir. The company currently has 14 freehold managed pubs, with another purchase agreed to complete by the end of this month.
The past 12 months have seen expansion in overdrive with seven acquisitions — from Spirit, M&B, TCG and Barracuda, all within the north-east and North Yorkshire. "We also have plans to acquire a further four or five in the next three to six months," Weir tells Diary.
The mystery of Vince's payments
Music entrepreneur, Enterprise lessee and Fair Pint supporter Vince Power has had a tough year. His Vince Power Music Group, which includes a few Enterprise leases, went through a pre-pack in January. He personally lost no less than £7.9m, before his Power Entertainment Limited (PEL) vehicle bought assets out of administration for £600,001 with a personal guarantee attached. In an unusual deal, PEL is paying in instalments. A total of £100,000 was paid before the end of February. The company was due to pay £5,000 monthly instalments between February and July before payments climbed to £10,000 per month for two months, £15,000 per month for three months, and so on to £35,000 per month in November and December 2011. A final payment of £100,001 is due in January 2012. A report filed at Companies House by administrator Shipleys shows payments of £5,000 due in May, June and July have not been received "despite various requests". What's happening, Vince?
Pack to the future for father and son
Who doesn't like a bit of free money? It's sometimes just a case of knowing where to look. Father-and-son team Alister and Jason Borthwick have bought what could be a sleeping giant in Norwich — the now-closed Ferry Boat Inn in King Street near the Riverside complex.
The pair, who run the successful Deepdale campsite on the north Norfolk coast, have spotted a gap in the market for a backpackers' hostel. They want to build a five-storey, eco-friendly hostel with 200 rooms plus pub on the site to attract tourists to the city. "Very few backpackers visit the east of England and it's time to change all that," says Jason.
And that's where the free money comes in. They're setting up a marketing group to put the region on the backpackers' map. An application is being submitted to East of England Development Agency for grant funding to start the marketing group. More than 50 organisations have already expressed an interest in being involved in the group — and it could unlock £50,000 of grants. Nice.
A mesmerising new venture
Innbrighton has a strong position in Brighton, with 39 pubs and four nightclubs. The company faced a challenge, though, when it took over the Old Orleans venue earlier this year, occupying a plum position at the bottom of the Lanes. The end result has been unveiled — a funky pub called the Mesmerist. With its celebration of Victoriana (but with a modern twist), TV illusionist Derren Brown would love it. Innbrighton boss Gavin George tells Diary: "It was an ambitious repositioning, turning what was basically a restaurant into a pub, so we did something a bit leftfield. The Mesmerist came from my interest in Victoriana, and specifically how some of the more bizarre interests of Victorian society seem doubly bizarre when given a modern context."
Post haste? Far from it at JDW
More evidence of JD Wetherspoon juggling its opening schedule as it pounces on cheaper conversion sites in the downturn. Take a planned opening in St Neots, Cambridgeshire, which is now way behind schedule. The company started work
on the £1.3m post office conversion project two years ago — and hoped to open it in February 2009. A JDW source says: "Dates were given in good faith but have changed. JD Wetherspoon is developing sites and St Neots will fit into the schedule when the company sees fit."
Barracuda escapes licence setback
A narrow escape for managed pub company Barracuda at its flagship Goddard Arms, Swindon, Wiltshire, which opened last December after a £2m spend. Three months after opening, the pub failed two test purchases carried out by Wiltshire Police and Trading Standards.
Licence revocation was avoided after prompt adoption of a string of extra measures: a minimum of three SIA (Security Industry Authority) registered door supervisors, all in high-visibility clothing, on Friday and Saturday nights; no-one under the age of 18 allowed in the premises after 7pm unless dining with an adult; the introduction of a Challenge 21 policy and staff should join the pubwatch scheme. Barracuda lawyer John Gaunt, eating humble pie, told a licensing hearing: "This is a very unusual occurrence and we are very sorry we are here."