View Full Version : The Pub Curmudgeon - Punched out

Blog Tracker
07-11-2012, 12:31
Visit The Pub Curmudgeon site (http://pubcurmudgeon.blogspot.com/2012/11/punched-out.html)

http://2.bp.blogspot.com/-bCp_Lt6BlZY/UJo1a-36XwI/AAAAAAAAB40/pQT951BMPWs/s200/Punch.jpg (http://2.bp.blogspot.com/-bCp_Lt6BlZY/UJo1a-36XwI/AAAAAAAAB40/pQT951BMPWs/s1600/Punch.jpg)
The Burton Mail reports that Punch Taverns has recorded an unwanted achievement (http://www.burtonmail.co.uk/News/Pub-giants-value-slashed-by-99-per-cent-in-five-years-07112012.htm):
A Burton pub giant has seen an astonishing 99 per cent wiped off its value in the last five years.

Punch Taverns, based on Centrum 100, posted the single biggest loss of 13 firms who have the misfortune of being part of a group dubbed the ‘90 per cent’ club.

It is an exclusive society UK companies are not in a hurry to join as it consists of those who are still part of the FTSE All Share Index but have lost more than 90 per cent of their value over the last five years.
Of course, in the meantime there has been a recession, but they made a catastrophic wrong-way bet on the way the pub trade would go after July 2007, which has proved to be their undoing.
Oren Laurent, chief executive of trading firm Banc De Binary, said: “The pub industry in the UK has been devastated by the recession — it was reported earlier in the year that 12 pubs close every week in the UK.

“However, Punch Taverns has been hit the hardest as, in my opinion, they made the mistake of loading themselves with billions of debt just as their core markets started to shrink.”
Anyone who actually understood the pub trade had a pretty good idea of what was going to happen, but they knew better and have been found out. It’s not as if nobody warned them (http://www.pubcurmudgeon.org.uk/beer07/curm0706.html).
I can’t say I’ll be shedding any tears. Sadly, though, if the company goes to the wall and is broken up, we are likely to see the loss of many still potentially viable pubs.
(h/t to Arfur Daley (http://beerbrewer.blogspot.co.uk/) on Facebook)

More... (http://pubcurmudgeon.blogspot.com/2012/11/punched-out.html)