Acquisitive pub companies are already eyeing up the assets of the Maclay Group who went into administration at the end of January. At the time the directors of Maclay Group plc issued a statement saying that they had failed to ‘find a strategic solution to financial pressures facing the business.’
As a result the company appointed Ernst & Young (EY), and Colin Dempster and Gavin Yuill took on joint-administration duties. Almost immediately EY confirmed that it has already had a “number of expressions of interest.”
Despite managing 28 pubs, only 15 were in direct ownership, the remaining 13 pubs are managed properties.
Gavin Yuill said, “Faced with an unexpected funding requirement, the directors of Maclay Group plc and its trading subsidiary Maclay Inns Ltd decided to call in administrators to protect the business and safeguard jobs.”
He continued, “The contract for seven managed properties immediately transferred to LT Pub Management. EY will continue to trade the fifteen properties owned by Maclay Inns Ltd, plus the five managed properties, as a going concern while a buyer is sought.
He concluded, “The underlying business remains strong and we have received a number of expressions of interest as might have been expected given the esteem in which the brand is held.”
Tennent’s, who could be one of the companies biggest creditors, and who in 2012 entered into a supplier agreement with Maclays, which also included an equity involvement, released a statement from Brian Calder, CEO. He said, “We can confirm that Tennent Caledonian Breweries (TCB) is a supplier to, and has an equity involvement in Maclay Group plc. Following the announcement by Maclay Group TCB will work with the bank, the administrators and other shareholders to optimise value for all stakeholders.”
Properties owned by Maclay Inns Ltd (Not traded by EY):- Abbey Inn & Bull Inn, Paisley; The Bank, Lansdowne Bar & Kitchen, The Lee and Three Judges, Glasgow; Braes, Dundee; East Port Bar, Dunfermline; Lorne Bar, Oban; The Rule St Andrews; Southsider, Edinburgh; Tullie Inn, Balloch; Village Inn, Arrochar and West Port Hotel, Linlithgow. The five managed by Maclay Inns (now managed by EY) are Clerk’s Bar, Edinburgh; The Hope, Munro’s and The Raven in Glasgow and The Wick in Prestwick. The management contract for seven pubs are been transferred to LT Pub Management. They are Canal Station, Paisley; Clockwork Beer Co and DRAM Glasgow; Dog House, Balloch; Laird & Dog, Lasswade; The Steading, Edinburgh and Wheel Inn, Perth.EY
The Alloa-based group, which last filed consolidated accounts with Companies House for a 16-month reporting period, ending 1st February 2014, said at that point that operating profits had dipped 15% to £604,616 against £718,302 for the 12-month 2012 financial year. Turnover rose to £13.52m for the 16-month against £10.43m reported for 2012, but its pre-tax loss was £199,819. It didn’t manage, according to notes in the accounts, to secure its term loan facility of £10.5m with Lloyds Banking Group, until February, 2014.
