JDW to sell 7 pubs

20-Jul-2021 - Last updated on 20-Jul-2021 at 10:45 GMT

Deal to be done: the sites being disposed of are in England and Wales (image: Getty/Sam Edwards)

Related tags Jd wetherspoon Property Finance Managed pubs

Pub giant JD Wetherspoon (JDW) has appointed two agents to dispose of seven of its sites in England and Wales for an undisclosed sum.

The venues are either freehold or long leasehold and found in town centre locations. They are being considered for sale either individually, in small packages or as a full portfolio.

A spokesperson on behalf of the Savills and CBRE, which have been appointed to sell the sites, said: “Following the success of our earlier marketing campaigns for JDW, we are delighted to be launching these seven outlets to the market.

“These sizeable venues are all fitted to a high standard, which will make them appealing to a broad range of potential buyers.”

Full list

The pubs are:

The Bell Hotel, Aylesbury, Buckinghamshire
Chapel an Gansblydhen, Bodmin, Cornwall
The Robert Peel, Bury, Manchester
The Drum, Leyton, east London
The Sir Daniel Arms, Swindon, Wiltshire
The Postal Order, Worcester, Worcestershire
The North & South Wales Bank, Wrexham, Denbighshire

This follows the pub group announcing it will be increasing its food by 40p per meal when the VAT rate increases to 12.5% later this year.

In a trading update, JDW also outlined the company’s stance on VAT and that “taxes should be fair and equitable” – something chairman Tim Martin has been vocal about in the past.

Price increase

The operator went on to address that while the Chancellor reduced the VAT rate for hospitality to 5% during the pandemic, this was still above the rate supermarkets pay, though it was welcome.

The update continued the interim rise to 12.5% in September will mean the pub group will have to push its prices up for meals and said the increase in VAT will mean the entire hospitality industry less competitive.

Furthermore in the results, the company reported it currently has a net debt of £865m and expects it to be about £833m at the end of this financial year.

It has received covenant waivers, up to and including the quarter to July 2021. Normal earnings before interest, taxation, depreciation and amortisation (EBITDA)-related covenants have been replaced with a minimum liquidity threshold of £75m.