Punch Taverns looks to reduce debt pile

Mon, 10 Jun 2013 | BUSINESS NEWS

Pub company Punch Taverns is looking to restructure the business or risk having to sell off pubs or enter administration.

Punch Taverns is the biggest leased pub company in the UK and has over 4,200 pubs nationwide. The Sunday Times reported that the firm is due to put forward a plan this week for how to improve relations between the company’s management and some of its main creditors.

It endeavours to renew its efforts to address a large debt burden of £2.4 billion, built up partly during its own acquisition spree. Much of its debts are held in long-term bonds and any left over cash is used to pay off the interest.

If a restructuring plan cannot be agreed upon amongst the parties involved, Punch Taverns could be forced to sell off more of its pubs, or, at worst enter administration. A prior plan - that was rejected by some of the bondholders - would have involved some lenders writing off debts, with others accepting delayed repayments.

Under the new plan some lenders would be given cash to walk away. An investment bank, possibly Goldman Sachs, would meet payments. It is thought that this plan will be viewed as less than satisfactory by the lenders, however.

Established in 1997, with the purchase of a pub portfolio from Bass Lease Company, Punch Taverns has gone on to make some large purchases. It secured a deal to buy Pubmaster, with 3,115 leased and tenanted pubs in late 2003. The next large purchase saw it take on another 1,064 pubs form Innspired Group in 2004. It then bought Spirit Group’s estate of 1,829 managed pubs in 2006.

Related articles:
Punch Taverns continues to close down pubs
Suffolk brewery to be put on the market
HK Taverns appoints administrators

Share this article

Latest Businesses for Sale

CPQ Software as a Service Provider
East of England, UK

The company is a provider of Configure, Price, Quote (CPQ) Software as a Service (SaaS) and Data to drive eCommerce. ▸ Long-term framework agreements with key clients. High level of recurring income from contracts. Offers invited.

Asking Price: Offers Invited
Turnover: £3,350,000


Energy Management Providing Meter Readings & Efficiency Analysis
North West, UK

Specialist engineers providing a range of energy management services including the supply & maintenance of electricity billing meters, energy reports & cost budgeting. Contracted to provide metering services on behalf of a major electricity distribut...

Asking Price: Offers Invited
Turnover: £720,000

Plumbing & Heating Engineers
Yorkshire and the Humber, UK

Plumbing & heating engineers offering specialist domestic & commercial services including repairs, breakdown assistance & installation of domestic kitchens, bathrooms & bedrooms, operating from two showrooms. Operates two strategically located showro...

Asking Price: Offers Invited
Turnover: £1,334,000

View more businesses for sale

News Search

Latest News


Chancellor bolsters CBILS for small firms and unveils new scheme for large companies | BUSINESS NEWS

Chancellor Rishi Sunak will today take new measures to suppo...


Benito’s Hat to continue trading despite entering administration | ADMINISTRATION

Fast-casual Mexican food chain Benito’s Hat has entere...


Next puts headquarters and three warehouses up for sale | COMMERCIAL PROPERTY

Fashion retailer Next has put its head office and three ware...

Free guide: 10 Biggest Buyer Mistakes

Sign up to receive our acquisition alert emails to get your FREE guide


Related News


Moonpig owner in business sale rumours | BUSINESS SALE

A number of private equity firms are thought to be circling ...


Orchid pub chain up for sale | BUSINESS SALE

Orchid, one of the UK's biggest pub chains, has been pu...


Card Factory poised for a sell off | BUSINESS SALE

Discount card retailer Card Factory is being prepared for a ...

Want access to the latest businesses for sale?

Business Sale Report is your complete solution to finding great acquisition opportunities.

Join today to receive:

  • Comprehensive range of businesses for sale
  • Make direct contact with business sellers or their intermediaries
  • Access to all UK administrations, liquidations and winding-up petitions
  • Daily email alerts for the latest businesses for sale & distressed notifications
  • Business Sale Report publication posted to you every month
  • Advertise your acquisition requirements on our "business wanted" section

All this and much more, including the latest M&A news and exclusive resources