The Orchid Group, the UK’s fifth largest pub operator, has secured an investment deal just moments after the company went into administration.
The group, which currently runs 287 pubs and restaurants in the UK and employs 6.5k staff, have secured a sale of the majority of the business to an unknown company, after the decline in consumer spend coupled with legislation prompted them to seek help from administrators.
David Chubb, partner at PricewaterhouseCoopers and joint administrator of the Orchid Group, said: “We are extremely pleased to have been able to effect an immediate sale of this business, particularly in the lead up to the festive season. Through the sale of the business, we have been able to save at least 240 of the group’s pubs and 5,300 jobs across the UK.”
Orchid’s existing management team will continue to lead the group as part of a financial restructuring, while, as part of the sale, an existing option to purchase the remaining sites has been sold, and PwC will be working with Orchid to ensure the survival of the 48 pubs.