Monday, July 18, 2011

Turnover of £17m for Buchanan’s LT Pub Managament

From Zeros to Heroes in terms of turnover in just a few short months while hundreds of enterprising publicans have gone to the wall.

This story is just an insight into the collapse of the tied lease pub sector 'model'. Seeing how hard it is for this lot to make a profit out of pubs that have failed several times already without investment is an indication of where the pub industry's really failed this last two decades. Here we have dilapidated, basket case pubs being operated on behalf of their freeholders who are hoping against hope they'll be re-let to people with cash to invest and limitless hours to pour into trying to turn them around into profit generating machines - for the pubcos - again.

Just WHAT Punch are going to do with the 2,300 pubs they're trying to flog off to leaseholders - if their lessees cannot raise the cash to take the liabilites off Punch's hands - is an interesting challenge for the pub sector. Look out for further exponential growth in Billy Buchanan's business turnover over the next couple of years.

A few people in this industry are still looking at the national pub estate as being ripe for rip off as long as there are new lessees coming into it enticed by the idea of a 'low cost entry' into owning and running their own lucrative business. Little do they know just how untrue that really is with people with insatiable appetites for emptying out the nation's family silver waiting in the wings.

See Sapient Corporate Finance's founder spouting off about how tenanted pubs are still great for private equity investments (read: easy money for no effort).

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