Tuesday, July 07, 2009

Marston's pub re-opens after six month closure

Peter, it simply beggars belief doesn't it.

A headline over the reopening of just one more failed and shut pub in one estate of one pubco. A sticky plaster on a pinprick against the unseen hemorraghing of business failures and permanent pub closures across the industry. It would be useful to know what level of investment has been put into the building, who coughed up for the capital expenditure, and how that impacted on the tied rent, the extent of the tie and whether there is a sensible discount on the supply side. It is, after all, a 'buyer's market'. It would be no surprise to discover that Red Kite glided (glode? floated? sailed?) in on the back of a financial package from Marstons which removed the incomer's risk but increased the likelihood of a long term rent coming in for the pubco. You know, a bit like pubco / tenant relationships are supposed to work but so rarely do.

Pubcos are trapped in a catatonic state over pub closures, incapable of acting as 'operators' getting pubs back into use themselves. All they are able to do is desperately hope upon hope that decent actual operators - people who know what they are doing - with cash to invest will come and take over individual outlets and help relieve the strain.

It's an admission pubcos will NOT own up to: pubcos by and large are not 'operators' they are property management companies. IF they were operators they would understand the need to keep their pubs open in the first place by supporting them adequately through business development and all sorts of other investments they utterly neglect in their business 'model'. IF they were to admit they are not 'operators' the tie would have no legitimacy at all.

No comments:

Post a Comment