Former chairman Jones considering buying PBR

May 13 2009 by Chris Knox, The Journal

TROUBLED pub and club operator Premium Bars and Restaurants (PBR) could be sold by the end of the week with up to six suitors – including a former chairman – believed to be interested.

The company, which runs Blu Bambu, Sea, Chase and Jimmyz nightclubs in Newcastle as well as the Living Room restaurant on Grey Street, has been badly hit by the recession and has debts of more than £45m.

It has been up for sale for a month and half a dozen interested parties and one bidder who has expressed an interest is PBR’s former chairman Mark Jones.

He would like to expand its Living Room chain of restaurants, which it borrowed £32m to buy in 2007.

Despite the company’s debts, Mr Jones still believes there is a future in the company and is currently working with a venture capitalist and his legal team to prepare a bid.

He said: “I am certainly drawing up a plan at the moment and believe that the business presents a great opportunity if the price is right. It has certainly suffered in recent years and the debt it got into over Living Room hasn’t helped it during the current turbulent market.

“However, the fact is that Living Room is still a great brand and it is clear that it could become very successful once we come out of the recession. In terms of the company’s debt, I can’t say too much at this stage, other than we are interested in buying the whole of the business.”

Others rumoured to be interested include Northumberland entrepreneur Alan Rankin, who was the chairman of Newcastle-based Ultimate Leisure before it changed its name to Premium Bars and Restaurants, and Newcastle bar and club firm Ladhar Leisure. Neither Mr Rankin nor Ladhar Leisure were available for comment yesterday.

PBR has had a tough couple of years for PBR, with its latest figures for the year to last June 30 revealing a £21.4m loss before tax, which included a writedown of £20.5m.

The firm, which owns 48 outlets in the UK, including the Waterside Hotel on the Quayside and the Rex Hotel in Whitley Bay, began life in Newcastle as Ultimate Leisure before changing its name in 2007 and moving its headquarters to Cheshire last year.

No one from PBR was available for comment.