Merger talks have taken place between Premium Bars & Restaurants (PBR), the beleaguered Aim-listed group, and 3D Entertainment, the club and bar operator spun out of Luminar Leisure, M&C understands.
The talks are understood to be of an informal nature and individuals close to the situation intimate the groups are some way from concluding a deal.
A merger, which would see the creation of a 100-plus unit operator of clubs, bars and restaurants, is thought to hinge on Royal Bank of Scotland, the lead banker to PBR. The group has debts of about £40m.
A source close to the situation said: “Everybody is looking to baulk up, to take out administration costs. The main challenge is for everybody to agree value.”
Shares in PBR were suspended from Aim last month after the group missed a deadline for filing interim accounts, as prolonged talks with its banks continued. Its banks are thought to require PBR to raise cash from existing shareholders in order to continue supporting the group.
3D Entertainment, which operates Chicago Rock Café, made approach to Regent Inns over a deal last year but Regent rejected the idea. It recently sold around 30 sites to nightclub entrepreneur Martin King.
