New city bar hits hard times

Aug 2 2008 by Graeme King, The Journal

ONE of the newest and most high profile additions to Newcastle nightlife has been forced into administration just months after opening for business.

The £2m Tup Tup Palace on St Nicholas Street in Newcastle city centre was opened with much fanfare in December last year with celebrity guests in attendance.

But the company behind the high profile bar, Pathfinder Ventures, is now in the hands of administrators from Begbies Traynor.

The business partners behind Tup Tup, James Jukes, Matt Smyth and Nigel Holliday, are said to owe sizeable debts to many parties through Pathfinder, including some involved in the original fit-out of the venue.

Brewer Scottish & Newcastle is known to be owed a substantial six figure sum, but has a provision whereby when the lease for the business is sold, it will receive a share of the proceeds.

A deal to sell the lease is said to be imminent, with Rob Cameron of bar and club operator Tokyo Group already operating the venue under licence from Begbies Traynor.

It is believed the property’s owner Premium Bars & Restaurants agreed a lease with Pathfinder on terms which allowed a rent-free period to allow Tup Tup to get established, but that was not enough to keep the business afloat. Yesterday, Simon Lundy of Begbies Traynor said: “We have a deal struck with a purchaser who is in the property under licence, trading it, with a view to a sale within the next week.

“They are buying the assets, the lease, the goodwill, fixtures and stock. The good news is that it is still trading and the staff still have jobs, which keeps some continuity.

“There is a large debt to the brewery, but they have security over the asset. The business had a massive refurbishment and there are debts outstanding from that.”

Tup Tup Palace invited guests including members of Girls Aloud and boxer Ricky Hatton to its opening to raise its profile.

The bar was originally marketed as a ‘restobar’ with some seats allowing drinkers to recline on piles of cushions, and it was also to feature a one-bedroomed ‘monotel’ as an attraction for high rolling guests.

The partners behind Pathfinder predicted the entire venue would generate weekly revenues of around £45,000 once it was fully operational.

They even hoped to roll out the brand across the country, with York touted as the next location.

The three main partners, who had experience in the bars and clubs world, though not as proprietors, were backed by major investor Nicholas Woodhead.

The Journal tried to contact Mr Holliday for comment yesterday but he was not available.

We have a deal struck with a purchaser who is in the property under licence, trading it, with a view to a sale within the week