ONE of the country's biggest pub chains is poised to take over the beleaguered Premium Bars and Restaurants group.
Orchid Group has agreed a deal in principle with administrators for the acquisition of the business which includes the Living Room and Prohibition brands.
Due diligence and tying up the details of the transaction are expected to take between four and six weeks.
The Hertfordshire-based company, with a portfolio of 249 premises, is currently finalising an exclusivity deal with BDO Stoy Haywood, which was appointed as administrator of PBR on August 4.
Orchid chief executive, Rufus Hall, said: “The deal is agreed in principle.
“We want the employees and customers to know it’s going to be OK. We’ve followed the situation and we’ve been trying to do a deal for a while.”
PBR, which has well-known brands including The Living Room, Bel & The Dragon, Prohibition and the Ultimate Leisure chain, collapsed after racking up debts of more than £40m and failing to secure extra bank funding.
The group made a loss of more than £20m last year. Around 45 outlets have continued trading, including Living Rooms in Liverpool and Chester.
Ten of Orchid’s 249-strong portfolio of pubs and restaurants are based in the region, including the Weld Blundell at Formby, the Rocking Horse, Aintree and the Cherry Orchard at Arrowe Park.
Mr Hall said: “All of our pubs are suburban, away from the city centre. Ours are large, well-invested pubs – 44% of our sales is food.
“We’ve invested in our pubs over the last few years to move with the times.
“We are repositioning towards food, wine, coffee and women customers. The high street had been overheating, but the opportunity is now the right time to invest in the high street.”
BDO LLP business restructuring partners, Shay Bannon, Dermot Power and Tracey Pye, confirmed that they are in discussions to sell the business and assets of the Premium Bars and Restaurants Group to the Orchid Group.
Former Living Room founder Tim Bacon was monitoring the situation, but has now stepped aside.
