Orchid Pub Company, the managed operator of 250 pubs led by Rufus Hall, is set to acquire Living Room operator Premium Bars and Restaurants, writes Paul Charity.
The deal could be announced as early as tomorrow by administrator BDO Stoy Hayward. It is thought that the deal has been agreed in principle and will take a few weeks to complete.
The deal will be the second one for Orchid since it went through a pre-pack administration, shedding around 50 sites, last December.
The company took Bar Room Bar’s best sites out of administration two months ago. Hall has previously signalled that he feels the time is right to operate high street assets.
Industry sources suggest that a number of Premium’s loss-making sites will be left in administration.
Speculation that Orchid would become involved in running Premium has been rife in the industry for a couple of weeks after key Orchid staff were spotted undertaking due dilligece at Premium venues.
Premium was placed in administration in August after shareholders the Reuben brothers failed to buy the business after bidding around £50m.
The property entrepreneurs denied suggestions they were responsible for failure of the deal by attempting to renegotiate the price, insisting the company’s banks, led by Royal Bank of Scotland, were to blame.
In a statement at the time Simon and David Reuben said they believed that “senior lenders have frustrated any conceivable opportunity to keep the business trading as a viable entity”.
Administrators BDO Stoy Hayward immediatedly closed three outlets - Living Room venues at Chester, Glasgow and Islington - while seeking buyers for the remaining 45 sites.
