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www.thepublican.com thePublican Monday 26/10/09 17
City & Business This Week
‘I can’t help feeling that much has been done CARLSBERG
in the wake of BEC to head off the worst COST-CUTTING
possible outcome’ IS PAYING OFF
RESTRUCTURING CARLSBERG UK
Hamish Champ, City & Business Editor
had seen “10s of millions” of pounds
saved in cost reductions, chief execu-
Email hamishc@thepublican.com
tive Isaac Sheps said last week.
Talking to The Publican Sheps said
At the time of writing this column the Office hopefully have given most in the sector cause a review of the brewer’s operations
of Fair Trading had yet to reveal its decision for reflection.
had created a merged sales force that
was responsible for selling into both
on CAMRA’s ‘uber complaint’ concerning the If there is to be no referral pub companies the on and off-trades, versus the two
beer tie. and regional brewers alike should use the
separate divisions that had operated
before.
There are, as I’m sure you’re aware, three respite as an opportunity to get to grips with “We’ve regrettably lost about 10 per
possible scenarios: an out-and-out referral of what is an incredibly onerous situation for
cent of our workforce – 250 people –
through the
the industry to the Competition Commission, many in the on-trade.
restructuring – but
with all that a two to three-year review of the I know tenants sign a binding agreement
those still with us
have embraced the
sector’s practices is likely to entail; a cautious, and should stick to it. But relations from both
changes we have
nay ‘informal’, observation of the sector, or sides have to improve. I know pubcos will point
put in place,” he
lastly there’ll be ‘no case to answer’. to millions being spent monthly on struggling
said.
On the Leeds brewery closure
While a non-referral would be greeted with pubs, and this is of course welcome. I know
Sheps said as many as possible of the
dismay by CAMRA and anti-tie campaigners these same companies point to changes in
150 staff affected would be given the
opportunity to move to Carlsberg’s
there will be an almighty sigh of relief their business practices that pre-date BEC.
main brewery in Northampton, but he
emanating from the headquarters of pub But I can’t help feeling that much has been
was not sure of the number who
would make the move when the
companies and regional brewers alike. done in the wake of BEC, to head off the
facility closes in 2011.
One hopes the industry wouldn’t crow about worst possible outcome.
Noting that Carlsberg’s UK beer
volumes had grown one per cent in
things; the last 12 months, from the sub- If the OFT doesn’t refer this should not be
the past 12 months, Sheps said the
missions to the BEC enquiry and the appear- seen as a victory; it should be seen as an
operation was now more profitable
than it had been.
ance of pubco bosses before MPs through to opportunity to turn the sector round for the
what was a very damning committee report, benefit of all concerned…
• For the full interview with Sheps see
next week’s issue
LESLIE IN REGENT BUYOUT
Pubco chief leads management buyout of 60 sites from troubled operator
REGENT INNS chief executive John in the last 18 months had come to John Leslie: ‘This Avenue, being closed. Twelve sites,
Leslie last week led a management nothing, while trading came under process is in the including nine Old Orleans restau-
buyout of 60 of the group’s venues intense pressure and the group issued best interests rants, have been sold to Punch
from administrators in a pre-pack a number of profit warnings. of creditors Taverns.
deal. Leslie, who declined to reveal what and staff’ Following declining revenues and
Leslie headed a team comprising of his team paid for the 60 sites, told The aborted efforts to sell and leaseback a
a number of senior Regent executives Publican: “We’ve tried to find every number of Walkabout sites Regent
to acquire the units, which currently solution possible for this business, recently de-listed its shares in order to
trade as Walkabout bars, Old Orleans including a sale process which was save administrative costs, believed to
restaurants and Jongleurs comedy handled by [accountants] BDO. be around £200,000.
venues. “We had offers but they were either But with the pre-pack out of the
A new company called Intertain insufficient or not funded well way, Leslie said the company could
Limited has been created to run the enough. The process we have under- trade much better. “This has always
operations, which the former Regent taken is in the best interests of both including chief operating officer Simon been a cash-generative company.
boss said would focus on providing the creditors and the staff.” Kaye, Intertain has appointed former Losing the tail will help significantly
entertainment – both live music and Leslie would not comment on who Pitcher & Piano managing director raise EBITDA, while we’ve got much
televised sport – throughout its estate. funded the deal, but The Publican Mike Dowell to help run the business. lower debt now,” he said.
The buyout draws to a close a tur- understands no private equity was The pre-pack deal saves 1,800 jobs, With events such as next year’s
bulent period for Regent and Leslie, involved, suggesting that Regent’s with around 160 staff losing their jobs World Cup football tournament on the
who described the past year as “the banks – RBS, Bank of Scotland, as a result of nine poorly located and way, Leslie said he believed the units
toughest of my working life”. Several WestLB and Barclays – were onboard. underperforming sites, including the would fare well, given the effort that
attempts to sell parts or all of Regent As well as individuals from Regent Walkabout on London’s Shaftesbury was being put into the 60-strong estate.
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