HK Taverns, which managed and operated 50 pubs in the East Midlands has gone into administration. Graham Bushby and Guy Mander of Baker Tilly Restructuring and Recovery LLP are the administrators
The firm's operations included small community pubs to much larger locations that delivered revenue from food and drink sales.
Mr Bushby, said that the group was suffering as a result in lower consumer spending and that the company's financial position was unsustainable.
He said: “In response to creditor pressure, the company management reached the inevitable conclusion that the only option was to appoint administrators. Since our appointment we have worked closely with the pub company landlords to facilitate an orderly handover of the leasehold portfolio, thereby in many cases saving jobs and preserving value for all parties."
“We anticipate continuing to trade at five sites, which will secure around 40 jobs, until a buyer for the individual pubs or the group can be found.”
Administration can be a very powerful way of preserving the company. It is not all about the end of the business! Yes, some jobs are lost but this is as a result of rapidly cutting costs in a business. The first aim of administration is rescue after all! To see how administration can help save your business take a look at our pages on administration and pre pack administration