A further two sites formerly operated by Sarumdale, the 13-strong pub group that was placed in administration in 2012, have been sold for figures substantially below initial asking prices.
The report from its administrator Begbies Traynor says Sarumdale’s bank is likely to suffer a shortfall following the sale of the Sussex-based company’s assets, while the £1.2m owed to unsecured creditors is unlikely to be paid.
The report says that the Bridge Inn at Newhaven was originally placed on the market with Fleurets for an asking price of £395,000, later reduced to £340,000 with an expected “get price” of £300,000; this figure also subsequently became the new guide price.
A lack of interest in the site and on-going losses meant it was closed in July 2013 and sold at auction for £250,000 in October.
The Railway Tavern in Bexley was sold in July 2013 for c£56,000 for the leasehold and other costs – it was initially marketed by Fleurets for £75,000. There were no formal viewings for the pub despite sales particulars being sent to c7,000 applicants, a mix of private and multiple operators.
Expenses in the administration period amounted to c£300,000, of which £221,122 was owed to Convivial, which had been paid £1,800 per site per month to manage the trading units.
A report from January said four Sarumdale pubs had been sold for a total of £2.13m.
According to the new Begbies Traynor report, Heineken has a secured claim against Sarumdale of c£47,000, although the brewer is not expected to receive this money.
Preferential claims will total c£7,000, the report says, although there’s likely to be insufficient funds to pay the sum.
Unsecured creditors are owed c£1.2m. Again, Begbies Traynor expects there will be insufficient funds to pay, but this may change in the event of a successful claim against the bank in relation to Sarumdale’s hedging losses.
At the time of being placed in administration, Sarumdale directors Rodney Hall and Mike Lloyd blamed the interest payment obligations of their hedged loans, which totalled £350,000 a year for three years, for the firm’s demise.
