Punch Taverns provides details on why it will not support administrative receivership – and the consequences of default: Punch Taverns has provided more detail on why it will not support a proposal from senior bondholders to implement an administrative receivership. In a meeting with senior bondholders the company pointed out that there is “no certainty over the receiver’s actions and no one creditor or creditor group controls the outcome of the receivership”. In a presentation to bondholders, Punch said that the cost of administrative receivership would be circa £5m in the first year and circa £2m per annum afterwards. The company also reported that if the company allowed its securitisations to default there would be a loss of synergies of between £15m and £35m per annum. There would also be short-term disruption to the business and “confusion among tenants and employees expected to have a significant, unqauntifiable impact”. The company also reported that a default would reduce the ability to maximise the value in circa £400m of pubs identified for disposal. A default in the Punch B securitisation would also be expected to trigger contingent claims, including an estimated £40m in relation to the pension scheme - versus circa £56m of group free cash resources. The company stated last week: “A wide range of views was expressed at the meeting, including the feasibility of a pre-pack administrative receivership of one or both of the securitisations to effect a restructuring. Punch has reiterated that a pre-pack cannot be executed, is not in the interests of stakeholders as a whole and the board cannot support such an option.”

Hot concept - Maurice Abboudi to present at the Propel Multi Club Conference on Thursday 20 June at the Oxford Belfry: Maurice Abboudi will present on what makes sushi concept K10 unique – the company’s first site takes more than £40,000 per week on limited opening hours – in the ‘Hot Concept’ segment of the Propel Multi Club Conference on Thursday 20 June at the Oxford Belfry. Multi-site operators can book up to two free places by e-mailing jo.charity@propelinfo.com

Financial Conduct Authority faces court over swaps review: The Financial Conduct Authority (FCA) is facing a judicial review of its compensation scheme for companies that suffered losses as a result of the mis-selling of interest rate swaps. The new regulator, that has taken over work that was previously handled by the Financial Services Authority, will receive documents today setting out the concerns of medium-sized businesses who claim they haven shut-out of the process. The businesses, which have formed an action group brought together by law firm Manches, have dispatched a “letter before action” to the FCA’s chief executive Martin Wheatley.

Squeeze on household income worsening: The squeeze on household income is worsening as consumers are caught between rising living costs and falling incomes. Four times as many households (32%) reported that their finances had worsened than reported an improvement (8%), according to the Markit Household Finance Index. Consumers earning less than £23,000 per annum and those living in rented local authority housing or housing association accommodation were worst hit, with 45% reporting a deterioration in their household budgets. However, all income groups suffered a drop in disposable incomes, with a fall in public sector pay dragging down incomes.

Bowmark Capital set for Drake & Morgan investment today: Bowmark Capital, which owns Las Iguanas restaurant chain, has backed a management buy-out of London-based bar and restaurant operator Drake & Morgan in a deal that values the company at circa £20m, with an additional £10m to fund expansion. The private equity firm has supported a bid by Drake & Morgan’s management, including founder Jillian MacLean, to buy out her initial backers – Imbida Partnership – and provide cash for the company’s expansion. Drake & Morgan plans to open two new sites in Holborn and St Paul’s this year. Jillian MacLean, managing director, told The Financial Times: “With Bowmark’s support and financial backing, we look forward to accelerating the rollout of the company, both in central London and in other locations (countrywide).” The company said that there was potential for it eventually to open up to 70 locations UK-wide. Sales at Drake & Morgan rose by more than 40% to £16.4m in the 12 months to March 31, 2012 – having more than trebled the year before. Pre-tax profits climbed more than a third to £1.3m during the same period. John Connell who founded Imbiba Partnership, the investment group that includes Langton Capital’s Mark Brumby and which initially backed Drake & Morgan, said: “This transaction is consistent with our ‘buy, build and exit’ business model. Drake & Morgan has now completed its ‘start-up stage’ following which the dynamics of the company will change and it is now time to hand over to new owners to move the company to a more mature level.” Ron Pearson, a partner at Bowmark, said: “Drake & Morgan represents an appealing proposition for both customers and landlords, and is led by one the best management teams in the hospitality sector.” The deal is supported by debt from RBS Financial Sponsors and is expected to close today (Monday).

Mitchells & Butlers appoints two non-executive directors: Mitchells & Butlers has appointed Imelda Walsh and Colin Rutherford to its board as independent non-executive directors. Walsh is a non-executive director, and chair of the remuneration committee, of William Hill and was a non-executive director, and chair of the remuneration committee, of Sainsbury’s Bank from 2006 to 2010. She has held senior executive roles at J Sainsbury, where she was Group human resources director from March 2004 to July 2010, Barclays Bank and Coca-Cola & Schweppes Beverages. Rutherford is currently a non-executive director of De Vere Group Limited, where he chairs the audit committee and sits on the remuneration and nominations committees. He was executive chairman of MAM Funds a quoted fund management business from 2009-2011. Rutherford, who is a member of the Institute of Chartered Accountants of Scotland, holds several other board positions and has relevant experience in various public and private companies in the leisure and hospitality industries and in corporate finance. Chairman of Mitchells & Butlers Bob Ivell said: “I am delighted to welcome Imelda and Colin as two independent non-executive directors of the company. I am sure that they will significantly strengthen our board and bring a wealth of experience to our business. Their appointments demonstrate our commitment to bring our board and governance structures more in line with best practice guidance and our efforts to strengthen the board will continue.”

Pret A Manger reports profits surge; 500 jobs to be created in the UK: Pret A Manger is to create 500 jobs in the UK after reporting a surge in profits last year. The company, which has 323 stores and plans to open another 50 this year, saw sales increase 17% to £443m in the year to 31 December 2012 with Ebitda rising to £61.1m from £52.4m in 2011. During the year, it opened 19 shops in the UK, 11 in the US, two in Hong Kong and two in Paris. In France, the new Parisian shops have been so successful that average weekly sales are higher than any other Pret worldwide, the company said. The company also revealed that its tuna baguette has overtaken the super club sandwich as its best selling UK sandwich – and the fastest growing category is fruit. Chief executive Clive Schlee said: “2012 was a very strong year for Pret. We continued to invest in our core values, improving our menu, launching innovative employment schemes and building and refurbishing shops in all our markets. We opened in Paris and a fourth US city, Boston, and we gave more money to our charities than ever before.” The company, which is majority owned by private equity firm Bridgepoint, has begun a store refurbishment programme with lighter design and more seats. “Pret continues to evolve from being a takeaway concept for office workers into more comfortable environment able to satisfy workers, shoppers and local residents, as well as tourists and people on the move.” The company said it had seen robust growth in the first quarter of 2013.

Hotels boss to become chairman of D&D Restaurants after LDC acquisition: Simon Sherwood, who is former head of Orient-Express Hotel group, is to become chairman of Quaglino’s operator D&D Restaurants after an £50m investment by LDC, the private equity arm of Lloyds Bank. LDC has taken a 69% stake in the business having bought out Conran Holdings and Caird Capital – management has retained a 31% stake. Sherwood’s hotel experience is one of the reasons he has been chosen as chairman - D&D Restaurants opened it first hotel, South Place, in the City of London, last year and is expected to look at further opportunities. Davis Coffer Lyons advised LDC.

Documentary goes behind the scenes at Greggs: A new television series to air on Sky will go behind the scenes at Greggs. The TV series is called ‘Greggs: More Than Meats The Pie’ and will examine the company’s business’ operations. Siobhan Mulholland, Sky’s commissioning editor for factual programming, said: “This is going to be a warm-hearted and fascinating insight into a much loved British institution. The access is impressive; the cameras will be in the shops, following the delivery trucks, following characters and even in the usually confidential tasting labs.” Greggs: More Than Meats The Pie airs on Monday 29 April on Sky 1 and Sky 1 HD.

McDonald’s franchisees express frustration at discounting; UK division in growth: A survey of 25 McDonald’s franchisees in the US, running 180 sites, has found dissatisfaction about levels of discounting. The franchisees expressed concern that too many menu items are advertised and sold at steeply discounted prices, leaving operators with fewer chances to sell full-margin items. The brand’s big limited-time promotion during February was Fish McBites, which was followed by the launch of the Premium McWrap in March. But franchisees expressed frustration that those items have steep introductory discounts before being sold for full price. They also noted that the rest of the menu carries prices that drives too much traffic for too little profit, like the Dollar Menu and $1 beverage promotions. Meanwhile, McDonald’s has reported like-for-like sales in the UK are up “low to mid-single figures” amid a European slowdown in the most recent quarter. UK chief executive Jill McDonald told The Times: “We’re picking up the pace of openings. We see the opportunity to have modest growth – we might be able to open 25 or 30 in the coming years each year. We need to open new restaurants to remove the strain on existing restaurants.”

Sir Rocco Forte considers sale of Lowry and Balmoral hotels: Sir Rocco Forte is considering a sale of The Lowry Hotel in Manchester and Balmoral in Edinburgh to raise around £100m, according to The Sunday Times. The Rocco Fort Collection owns 11 luxury hotel properties. The newspaper suggested the company would attempt to sell the two properties whilst retaining a contract to run them. 

Individual Restaurants adds state-of-the-art heated terrace in Birmingham after lease extension: Individual Restaurants has added a new state-of-the-art heated terrace to its Piccolino site in Birmingham after negotiating a 20-year lease extension. The 40-seat heated terrace will include an outdoor lounge with stylish seating and a cocktail bar. Steven Walker, boss of Individual Restaurants, said: “After visiting the best outdoor dining terraces at some of the coolest restaurants and hotels in major cities around the world, we are looking forward to bringing the concept to Birmingham. We are very pleased about our 20-year lease extension at Brindleyplace. It is a truly outstanding location in Birmingham with a wealth of diverse businesses.”

Kuckoo opens second site in Chester: Kuckoo, a dedicated rock and roll bar concept with a strong cocktail offer, is opening a second site in Chester this Friday (26 April). Richard Powell, owner of Kuckoo, said: “Kuckoo has all the credentials of a world-class cocktail bar, with its luxe interior and supreme customer service, but the atmosphere created by the staff and the music is unlike anything Chester has seen before.” The first Kuckoo opened in Preston a few years ago.

Lymestone Brewery introduces “virtual brewing”: Lymestone Brewery is offering real ale fans a chance to become ‘virtual’ brewers. People who sign up will be able to make all the key decisions during the brewing process – which will then be put into action at the Stone brewery. Voting will be held online each week to choose the beer’s colour, strength, style, flavour, name and even label design. For an initial investment of £10, redeemable against the finished beers, all the ‘virtual brewers’ will be able to decide exactly how the finished product will taste. Ian Bradford, head brewer at Lymestone Brewery, said: “The brewing process can take up to six weeks and there are a number of key decisions to be made along the way. The possible variations on a standard glass of beer are almost limitless and this is where we need people’s input, whether it’s a different combination of hops, the use of roasted barley or even the addition of honey and fruit to the brewing process.”

C2 Original Inns to produce Mr Trotter’s pork scratchings brand extension: C2 Original Inns, the award-winning microbrewery and pub operator led by Matt Jackson, has produced a beer brand extension of the Mr Trotter’s, the pork scratchings brand part owned by the Duchess of Cornwall’s son, Tom Parker Bowles. Lancaster Brewery, the brewing arm of C2 original Inns, has produced Mr Trotter’s Chestnut Ale. The new beer has been trialed on tap at C2’s site, The Sun Hotel & Bar in Lancaster. “We were approached by the brewery who told us they wanted us to work together on a Mr Trotter’s branded beer,” Matthew Fort, food writer and a judge on The Great British Menu said. “It’s the ideal brand extension for us. We want people to have the whole Mr Trotter’s experience, so they can sip on our beer while nibbling our pork scratchings.”

Fat Cat sites on the market for circa £2m: The majority of the Fat Cat Café Bars estate, six sites, in on the market through Colliers International with a price tag of £2m. The venues are located in Nottingham, Leicester, Derby, Bow (East London), Bangor and Frodsham in Cheshire and includes one freehold and four free-of-tie leasehold properties. The Derby-based pub company, led by Matt Saunders, is currently trading ten units within the Fat Cat Café Bars brand, including eight high street bars and two gastropubs. Ross Kirton, director of Colliers said: “The Fat Cat brand has been established since the early 1990s and the sale offers the opportunity for either a roll out of the brand or possibly conversion to other mid-market food and drink concepts.” In its most recent reported year to 29 February 2012, Fat Cat reported a 6.6%  increase in turnover to £8,195,247 with pre-tax losses narrowing to £116,688 from £141,714 the year before. The company stated: “This year saw a welcome return to like-for-like growth for Fat Cat Café Bars, as it appeared that after two years of frantic belt tightening and subsequent declining sales for the company, the consumer started to venture out again onto the high street.” Site level profit before tax for the year, excluding one loss-making site, was £607,781.

Domino’s Pizza unveils new television show sponsorship: Domino’s Pizza has begun sponsorship of ITV’s Sunday evening comedy programme Off Their Rockers. The hidden camera series sees OAPs hitting the streets of Britain on a mission to dupe the general public with an assortment of light hearted pranks, mischievous set pieces and carefully crafted stunts. Simon Wallis, sales and marketing director at Domino’s said: “It’s such a fun show and is a great fit for our brand – pizza and laughs – the perfect Sunday evening before the working week begins again. We’ve developed a good working relationship with ITV, which has an impressive track record for prime time family entertainment.”

Former Luminar site in Swindon set to re-open: A former 1,800 capacity Luminar Liquid and Envy site in Swindon, which previously traded as The Brunel Rooms is set to re-open. A newly formed company called Brunel Rooms Swindon will re-open the site, which closed in November 2011 when Luminar Group Holdings went into administration. When the Brunel Rooms first opened in 1973 they featured a revolutionary revolving central bar, designed to imitate a railway wheel in recognition of Swindon’s locomotive heritage. Booths which resembled railway carriages were also installed. Sisters Helene Simpkins and Paula Harris and their business partner Jason Ranford are behind the plan – they are on the verge of completing a deal with First Investments, which manages the Brunel Centre shopping complex, where the club it situated.

Offers invited on landmark Cardiff hotel: The Radisson Blu Hotel Cardiff, one of Wales’ premier four-star hotels and whose 21 storeys dominate the Cardiff skyline, is being marketed for sale by specialist property adviser Christie + Co on behalf of Nick Edwards and Richard Hawes of Deloitte, as joint administrators of The Imperial Property Company (Cardiff 2) Limited. The hotel has 215 guest bedrooms including 35 ‘Business Class’ and 12 ‘Luxury Junior Suites’. Deloitte director Paul Evans said: “When we took over the operation of the hotel in 2010 our main focus was to complete the hotel to a quality four star hotel. We managed to achieve this in 2011 and with the support of Radisson Blu, the staff and our customers, we have managed to increase sales by 30.4% year on year. 2013 has started very well with sales exceeding forecast trading, and with the outlook for 2013 looking very positive, we expect the growth in our business to continue. We believe this is now the right time to bring the hotel to market trading under the Radisson Blu brand.”

Lewis Partnership chef takes first pub: Will Frankgate, a 2007 Roux Scholarship finalist who was head chef at The Lewis Partnership’s Dog and Doublet pub in Sandon, Staffordshire, has opened his first business. He has taken over Greene King’s Blue Bell pub in Glinton, near Peterborough. He aims to make it the “best gastropub in the area”. Lewis Partnership operates four sites and an outside catering business – its managing director Chris Lewis was named BII Licensee of the Year in 2008.

Couple open second Percy Vear ale house: Keith and Tracey Vear have launched a second Percy Vear cask ale pub. The Old Cask Inn at Leymoor Road, Golcar, Longwood has been re-named Percy Vear’s Old Cask Inn following the success of sister pub Percy Vear’s Real Ale House in Keighley. The Vears bought The Keighley pub – formerly The Friendly Inn – from brewery Timothy Taylor in May last year. Both pubs are named in honour of Keith’s grandfather, Herman, a boxer who fought under the name Percy Vear in the 1920s and 1930s. The Vears also own The Golden Fleece at Bradshaw, Halifax, which they acquired from Punch Taverns in 2010. Keith said: “We are investing in the future and for the local pub! All our pubs specialise in cask ales. We have four real ale pumps at The Old Cask and we want our ale flowing for years to come”.

Center Parcs boss will look at Ireland opening next year: Center Parcs, which enjoyed 97% occupancy in the UK last year, will look again at opening in Ireland in the wake of opening its new site at Woburn, Bedfordshire. The company is owned by private equity firm Blackstone. Of future ownership, chief executive Martin Dalby told The Sunday Telegraph: “I think Center Parcs is such a well-known company it would be great if it went back to being a listed business. Equally, a different private owner would also be very much welcomed, so I don’t think it really matters where we end up ultimately, whenever that might be.”

Burlison Inns opens latest site with real ale focus: Burlison Inns, the multiple pub operator headed by Gary Burlison, has opened its latest site, The Marlborough Arms on Cirencester’s Sheep Street. The pub was acquired from Punch Taverns. Manager Giles Darby said the pub is focusing on offering quality real ales, ciders and fine wines rather than food and was hoping to offer drinkers from the town something different.

PizzaExpress to open in Dorchester on Wednesday with inspiration from the Jurassic Coast: PizzaExpress will open a new site in Dorchester’s Brewery Square on Wednesday (24 April) with inspiration from the Jurassic Coast. Design director for PizzaExpress Mark Standing said the intricate wallpaper that will feature in the restaurant was chosen after examining a photograph of rock layering on the nearby World Heritage coastline. He said: “The Jurassic Coastline is spectacular and proved to be a fascinating stimulus for us to work with. We always look carefully at local history when creating our restaurants and in this instance Dorset’s world class heritage site really stood out.”

Embankment Inns opens latest site with Punch Taverns: Embankment Inns, headed by Russ Hayler, has opened its latest pub with Punch Taverns. The Holme Hall Inn (formerly, the Holmebrook Tavern) in Chesterfield has re-opened after a joint investment of £200,000. Hayler said: “Embankment Inns are excited about this latest venture with our partners, Punch Taverns. We have a good trade history with Punch and we will be working closely with Matthew Gaunt to grow and develop The Holme Hall Inn. Previously, the pub looked tired and dated and the cash injection has given it the stylish appearance it needed. The investment has bought the pub back to its former glory as well as introducing some new menus and facilities - our focus will be on value dining and drinking.”