It has emerged today that the main group of lenders that are represented by the Association of British Insurers (ABI ) have rejected Punch Taverns's latest restructuring plan as being "too vague".
As previously reported by Company Rescue on our blog in May , it was apparent then that the talks were not going well. The chairman has said that if the restructuring plan is not accepted then Punch could go into administration. If that were the case it would be the largest business since January to fall into the hands of administrators. The business has over 4000 pubs and employs thousands of staff.
The main problems facing Punch is that they went on a huge acquisition spree over recent years and at one stage had 10,000 pubs. The company is carrying £2.4bn in debt...
Punch recorded a pre-tax loss of £16.7 million in the six months to the end of March. Like so many others pubs have found themselves under increasing pressure from supermarket discounting, taxes and low consumer spending.
If your pub business is struggling why not read our guide on how to rescue your pub, hotel or restaurant business