The Po Na Na nightclub operator Barvest has been restructured by way of a controlled receivership, writes Paul Charity.
The receivership follows a failed sale of the business for around £15m last year.
In March this year, Avanti Capital, a publicly quoted firm that makes private equity-style investments, decided to appoint Reuben Harley as managing director of Barvest in the wake of the failed sale.
Now Avanti has formed a new company Barclub Trading Limited to buy 18 sites out of receivership for £8.25m. It is thought that the deal means that the company is able to step away from some of its less viable sites.
Avanti Capital takes over Barclay Bank’s position as first charge holder.
A statement from Avanti said: “Following the management changes announced in March, the new management team has undertaken a strategic review of the business and, as a result, a subsequent restructuring of the business by way of a receivership.”
It added: “As a result of the transaction the company will hold 60% of the equity of a new company called Barclub Limted, which wholly owns Barclub Limited, whilst management will hold 40%.”
The Ebitda of the 18 sites acquired out of receivership was £2.35m before head office costs in the year to 30 June 2005 with similar figures expected for the most recent year.
The receivership of Barvest means that the Po Na Na business is now substantially smaller that when Avanti bought it out of receivership for £7m in 2003 - it had 28 sites at the time.
It is believed, though, that several Po Na Na venues have been sold on an individual basis in the past six months.
Last year saw turbulent times at Barvest with chief executive David Phelps leaving the company in March. At the time, Avanti increased its stake in Barvest from 58% to 73%.
When Po Na Na was listed on AIM it ran a total of around 42 venues, a mixture of Po Na Na and Fez nightclubs as well as the flagship Hammersmith Palais.
One City source said: “There seems to have been an ever-decreasing number of viable sites over the past few years.”
