Wear Inns breathing new life into ailing pubs

At a time when many pubs are struggling or folding, Wear Inns is about to create jobs by investing in pubs across the north of England. The Business Growth Fund (BGF) and NVM Private Equity (NVM) have committed £10m of growth capital to help Wear Inns snap up under-performing pubs. As a result of the deal, BGF will take a minority stake in the business and join the board.

Founded in 2006 by chief executive John Weir and John Sands, the company’s chairman, Wear Inns buys and manages freehold community pubs across the North East and Yorkshire.

The estate has 15 sites, including The Priory in York, New Inn in Wetherby, The Sun in Shipley, near Bradford, and the Courthouse in Barnsley. Wear Inns, which is based in Billingham, County Durham, and employs 175 people, has trebled its sales over the last three years, with net revenues now totalling £7.3m. BGF and NVM’s £10m equity investment will enable Wear Inns to acquire further sites over the next few months, creating 40 jobs. Other acquisitions are expected to follow.

NVM has backed Wear Inns from start-up and, to this point, has £4.2m of capital invested in the business. This is a second investment for BGF in the North of England within six weeks, following its backing of the Manchester and Leeds-based Mexican food chain, Barburrito.

Mr Weir said: “Since starting the business six years ago, we have worked with NVM’s support to build up an estate of great community pubs offering good value and good quality across the North of England. We have now reached a point where we want to take that approach a step further with the goal of growing our estate over the next few years.”

Mauro Biagioni, North East director at NVM, added: “The Wear Inns team have developed a winning formula over the years – transforming dead or dying pubs into quality local premises that offer great beer, great prices and an entertaining experience for the whole family.

“Six years later, the company is going from strength to strength and has a clear strategy for the future.”

Advisers involved in the deal included KPMG, Watson Burton, Dickinson Dees and Addleshaw Goddard. Wear Inns was introduced to BGF by PwC.