Punch set to offload pubs

CHEF & Brewer owner Punch Taverns unveiled plans to offload more than 2,000 sites today in a major restructuring at the UK’s biggest pubs company.
By The Newsroom
Published 22nd Mar 2011, 10:35 BST

The debt-laden group will split in two, with the managed business behind brands such as Fayre & Square and Flaming Grill run as a separate company.

The remaining tenanted division has just under 6,000 pubs but 550 will switch to the managed business as Punch looks to create a core estate of 3,000 “high-quality” pubs over the next three to five years. It is expected to offload pubs at the rate of 500 a year through disposals.

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Chief executive Ian Dyson has been considering a number of options for the firm since joining Punch from Marks & Spencer in September.

He said the demerger of the 800-strong Spirit business from the leasehold pubs would allow the two operations to pursue their different strategies.

Mr Dyson added: “Spirit will be positioned to deliver market leading sales and profit growth and to expand with the aim of becoming the UK’s leading managed pub operator.

“Punch will be positioned to drive long term value by downsizing to a core estate of around 3,000 pubs with the aim of becoming the UK’s highest quality and most trusted leased operator.”