Mon, 20 Nov 2023 | ADMINISTRATION
Administrators are seeking a buyer for a group of 25 pubs across the North East and Yorkshire following the collapse of the company that owns them. Ryan Grant and Howard Smith of Interpath Advisory have been appointed joint administrators of Milton Portfolio Op Co 3 Limited and receivers of the properties owned by the company.
The administrators are now seeking a buyer for the business and its assets. All sites will continue trading during this process and all 264 staff at pubs belonging to the portfolio have been kept on at the former Wear Inns pubs.
Ryan Grant, joint administrator and managing director at Interpath Advisory, said: "This is a portfolio of profitable, strong performing and established pubs, comprising 21 freeholds and four long leaseholds, located across the North East of England and Yorkshire. We will be appointing selling agents in due course, with a view to bringing the portfolio to market at the optimum time to realise maximum value for creditors."
Despite the strong performance of the pubs, they have been hit by the impact of COVID-19 restrictions and net liabilities totalling around £2.7 million, which meant they faced considerable financial pressure.
According to the company’s accounts: "Since pubs were finally allowed to re-open, most recently from mid-April 2021, they have again returned to profitable trading whilst the lingering effects of COVID coupled with ongoing cost pressures due to the energy crisis, high inflation and rising interest rates continue to affect customer attitudes and spending."
The company added that funding raised from investors and through the government-backed Recovery Loan Scheme had facilitated a capital expenditure programme that transformed a number of the pubs and helped to enhance performance.
Five years ago, the former Wear Inns pubs were acquired by property investment firm Aprirose, parent of the Milton companies, in a £22.4 million deal with NVM Private Equity and Business Growth Fund. During a subsequent reorganisation, the pubs were transferred to Milton Portfolio Property 3 Limited while the properties were run by Milton subsidiary Blackrose Management Ltd.
The full list of pubs up for sale is:
Black Bull, East Boldon
Black Bull, Morpeth
Cross Keys, Washington
Dirty Habit, Whickham
Dirty Habit, Whitley Bay
Guide Post Inn, Springwell Village
Lambton Arms, Chester-le-Street
Lloyds Arms, Grimsby
Millstone Hotel, Gosforth
New Inn, Wetherby
Old Courthouse, Barnsley
Ox Inn, Oxhill
Porter Cottage, Sheffield
Prior, Doxford Park
Red Lion, Wakefield
Ship & Royal, South Shields
Smiths Arms, Billingham
Sun Hotel, Shipley
Victoria, Whitley Bay
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