RE: Barclays: banks still willing to invest in pubs

http://www.morningadvertiser.co.uk/City-News/Barclays-banks-still-willing-to-invest-in-pubs

It's the usual thing that's come about in the pub sector with The Blind (pubco CEO's) leading The Blind (various Bank CEO's) for three decades:

1) A bunch of not very bright people (pubco CEO's), when it comes to understanding how pubs or any form of retail or real industry actually work, got their feet under the table of the sector and applied 'financial instruments' to set about 'modernising' the sector.

2) A bunch of not very bright people (bank CEO's), when it comes to understanding how pubs or any form of retail or real industry actually work, got approached by 1) who wanted to borrow massive amounts of money so they could buy huge pub estates and then offer long TIED leases to thousands of highly skilled and visionary people who had their fingers on the pulse of the public's purse who would create all that vision of modernisation in a sleepy stuck in the past, traditional way of pub life, using entoriely their own skills, experience and, errrrm, hard earned cash from redundancies, remortgages and retirement packages as investment.

One set of clueless 'financial whizzes would lend a huge amount of cash to anther set of financial whizzes that would be secured against the freehold values of thousands of pubs which would be looked after, nurtured and maintained, improved and increase in value through the hard work and investment of other people whose aim was to provide themselves with a stable income and career in the hospitality sector. ON TOP OF THIS was the added insurance that these thousands of people would be buying all their beer from the pubco's at DOUBLE the price they could get it elsewhere - which meant that the whole world would have to collapse before the debts would get anywhere near being difficult to service.

TREBLES ALL ROUND eh!

We all know that banks talk total rubbish all the time. No point reporting empty rhetoric from them about lending to the pub sector.

The ONLY conditions they will lend to new businesses are against bullet proof property valuations about to be taken on by trading businesses with a proven track record of financial success and with guarantees left right and up to granny central.

Where a bank might is so deep in an existing business it will lend more in a desperate hope to get itself out.

Not great for ongoing business either way.