Sports Cafe shuts doors as ban on smoking partly to blame

Jan 15 2008 by Alex Turner, Liverpool Daily Post

THE smoking ban and poor Christmas trading were blamed for the collapse of the Sports Cafe chain owned by Wigan Warriors owner Ian Lenagan.

The Alternative Investment Market-listed bars group shut the doors of its Liverpool and Manchester outlets yesterday after the company went into administration.

The company, which employed about 500 people across its eight UK sites, said its banks had decided against further funding “primarily due to the poor trading conditions of the 2007 Christmas period and uncertainty over future 2008 trading in the light of general consumer market forecasts”. Six outlets continue to trade.

Receiver Bruce Mackay, a partner at accountants Baker Tilly, said: “The decision to close Liverpool and Manchester is driven by the problems at those two venues,” he said.

“Recent trading has been very difficult for them.”

“The directors started seeing real difficulties in the middle of November because of the impact of the smoking ban, the bad weather, and disposable incomes are beginning to be reined in.”

However, he is hopeful of finding a buyer.