Thursday, 26 September 2013


Well, knock me down with a feather! The announcement that Punch Taverns pre-tax profits fell from £52 million, to just £17 million in the last twelve months, comes as no surprise.

In the group's own words, they said:"Our future is in danger, unless an agreement can be reached with our lenders."

I don't hold out too much hope for this debt-laden, large business enterprise. Let's face it, if you cannot reach an agreement for debt, then you default. Lenders will then request early payment of the outstanding debt.

So are Punch Taverns on the slippery slope to bankruptcy? If so, I don't think many tears of sadness will be shed. Some may say: "good riddance to bad rubbish!"

Is it fair to say that they have ripped-off many licensees, with 
their unfair rent assessment and excessive beer pricing - whilst
letting many boozers fall into disrepair? Some of the pubs are in a very run-down state.

Some tenants have told me that taking on a Punch Tavern lease, is likely to be a recipe for bankruptcy!

Punch have never efficiently organised their massive debt pile - and if they do go 'tits-up' - then some lenders may show the same level of sympathy that Punch have shown to some of their former tenants!

The company's buying spree during the credit boom has undoubtably backfired. And they never recovered from the acquisition of the Spirit Pub Company, in 2008( demerged in 2011 ) when the recession began to kick-in and property prices began to fall.

So what is the future of this much maligned pub company? I reckon it's pretty bleak - and I hear some of you saying: "Good riddance!"


  1. Eye, good riddance. All their boozers will be better off as convenience stores.

  2. Woooooaaa, I am off to celebrate int' Nelson "Dressers" club.

    A few pints of Old Laund Dark awaits me.

    Hip Hip Hooray

  3. I think the bondholders are already questioning the legality of the de-merger. Its a bit like a bankrupt selling his house to avoid the clutches of the trustees.....

  4. Straight talking in a post. Good stuff.

  5. NO! Not as converience stores. The very best thing that could happen would be if Punch, or their administrators, were somehow compelled to offer the freeholds of their remaining sites to the leaseholders running them, or if under temporary management to bids from the open market. NOT packaged up and sold off in blocks to another hideous pub company. Get them into the free trade now and see them transformed to the enormous benefit of the communities they serve, and the wider pub/brewing industry as a whole.

    1. I agree, as a punch leaseholder, I would be far happier owning the pub I run. The issue is how do I afford it after so many years of economic depression. The payments I can afford, just as I can afford my over inflated rent. The deposit on a mortgage, well that's another matter.