Sunday, May 17, 2009

Brulines seeks legal advice over BEC report

* By Martyn Leek, M&C Report
* 14/05/2009 14:50

Quite, Inez. The pubs are closed because the rents were too high and the beer prices twice free of tie. And there was no service to couterbalance that impossibly loss making financial scenario. THe pubs are under management to keeep them trading and many won't get let again until the tie has gone and the rents are realistic.

As for Colin's thesis about rent increases, well that's pie in the sky beacuse they aren't going to go up. The puncos haven't a chance of raising rent. There's, errrr, a bit of a recession on right now Colin. Hadn't you noticed? But imagine for a moment your fairy tale of rents going up did come into place - if they managed to get away with it somehow what would happen? There would be thousands more pubs closing left right and centre. Not rocket science is it?

Fact is the pubcos have pushed their gravy train way too far up a dead end; there's no going back; they're just going to have to face up to the grim reality they created for themselves... there is no miracle way out. They cannot repay their debts and they cannot invest in their estates - because of the levels of debt they are carrying, and they can;t afford to lose the tie and they can;t ease up on rents and more and more pubs are closing all the time and fewer and fewer are being let and the ones that are being let are costing them money because ther're under management.

Right now they've still got cash and cash is king.

Look out for vanishing CEOs. You can spot them because they're still wearing the emperors new clothes they brought with them from the city.

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