Brothers get first refusal on bars
Jul 1 2009 by Iain Laing, The Journal
THE struggling group behind the Living Room bar and restaurant chain has confirmed it has made a deal with Newcastle Racecourse owner Reuben Brothers which could lead to its sale.
Property tycoons the Reuben Brothers’s company says it has entered into a period of exclusivity with Premium Bars & Restaurants (PBR) – which also trades as Prohibition Bar & Grill and Bel and The Dragon – to acquire the restaurant, bar and club operator for about £52m.
PBR began life 20 years ago as Ultimate Leisure and grew to be one of the UK’s biggest bar chains before changing its name and management and moving to Cheshire last year. It has about 50 venues and two hotels, The Waterside on Newcastle Quayside and The Rex in Whitley Bay.
The firm said it had agreed “not to solicit further approaches from any other potential purchasers during the exclusivity period”, which will expire on or before July 31.
Reuben Brothers Ltd said it would bring “expertise in the real estate and leisure sectors“ through its other business interests which include Criterion Asset Management, which runs the 850-strong Wellington Pub Company estate and Motcomb Estates, which operates three Riverside Hotels and other real estate assets.
David and Simon Reuben’s investments also include Northern Racing, the owner of 10 racecourses, including Newcastle.
“Through this wealth of experience, the Reubens will apply strong management disciplines to the business to improve the performance of the assets,” a statement for Reuben Brothers said.
It said it planned to acquire all the freeholds and most of the leasehold properties from PBR and “few changes“ would be made to management.
Shares in PBR were suspended last December after the company was unable to issue full-year accounts.
PBR said it had also agreed with its lenders to extend a short-term funding agreement to the end of the exclusivity period, adding that the purchaser had agreed to provide additional working capital during the period, which would be paid back in the event that the sale did not go through.
“The board will continue to review contingency plans in the event that a sale cannot be achieved on suitable terms,” it added.
