Tuesday, June 02, 2009

JD Wetherspoon to open three pubs in June

Shame most of the puncos can't be doing the same as Wetherspoons because this must surely be the best value time for investment in pubs. But pubcos' model is not about direct investment in the sector, it's about getting other people to put small amounts in which the pubcos then quickly wet vac out. No. Instead of robust investment in their bricks and mortar they're desperately selling off properties on the cheap in desperation to raise cash for buying debt back at knock down rates from disgruntled bondholders who must be feelimg amything's better than nothing. Thus the pubcos hope to avoid missing covenants which will really pull the threadbare rug from under their nervous sweaty feet.

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