UK - GI-backed Orchid may acquire Premium Bars & Restaurants

BDO expects to take about six weeks to conclude the sale of Hale-based Premium Bars, which operates 42 outlets, such as the Living Room, Prohibition and Bel & The Dragon. The chain collapsed after David and Simon Reuben, who already owned almost 33% of the business, failed to agree with lenders over a £52m takeover. The company's banks, led by RBS, would have had to write off a significant portion of Premium's £40m in debt.

In 2006, GI formed Orchid, which includes Bar Room Bar, Country Carvery and Sri Thai chains, when it bought nearly 290 pubs from Punch Taverns for £570m. The group ran into trouble last year and was unable to meet lease payments. The company went into a pre-pack itself in December, when GI decided to unload 47 of its 287 outlets. In June of this year, Orchid acquired 10 businesses from Birmingham-based Bar Room Bar.

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• Topics
• Expansion
• UK / Ireland