We need a business plan first and foremost and a look at the books. I reckon a small pub like this could easily turnover £300k per year. I dont see any reason why a group of shareholders couldn't make a go of this
[cite]Posted By: Valley McMoist[/cite]We need a business plan first and foremost and a look at the books. I reckon a small pub like this could easily turnover £300k per year. I dont see any reason why a group of shareholders couldn't make a go of this
I think the turnover figures were posted on here some while ago when it originally went up for sale. With the pub closed, I reckon the bewery could be persuaded to accept £20,000. Probably need £10,000'ish working capital (stock etc.), so £500 x 60 of us = £30,000.
[cite]Posted By: Valley McMoist[/cite]We need a business plan first and foremost and a look at the books. I reckon a small pub like this could easily turnover £300k per year. I dont see any reason why a group of shareholders couldn't make a go of this
I think the turnover figures were posted on here some while ago when it originally went up for sale. With the pub closed, I reckon the bewery could be persuaded to accept £20,000. Probably need £10,000'ish working capital (stock etc.), so £500 x 60 of us = £30,000.
I'm in!
Why would the freholder accept £20,000 when there was an offer at auction in April of £69,000? There were several experienced publicans who also went to £50,000. A more relaistic estimate would be £60,000-£70,000 with £20,000 working capital (you would need to spend £10,000 immediately to restore the pub and protect your initial investment from the moment the doors re-opened). So, if there are 8 interested parties with £10,000 to commit, I'd join as the ninth and we could have a more serious conversation!!! Let's be `aving ya!
[cite]Posted By: Valley McMoist[/cite]We need a business plan first and foremost and a look at the books. I reckon a small pub like this could easily turnover £300k per year. I dont see any reason why a group of shareholders couldn't make a go of this
I think the turnover figures were posted on here some while ago when it originally went up for sale. With the pub closed, I reckon the bewery could be persuaded to accept £20,000. Probably need £10,000'ish working capital (stock etc.), so £500 x 60 of us = £30,000.
I'm in!
Why would the freholder accept £20,000 when there was an offer at auction in April of £69,000? There were several experienced publicans who also went to £50,000. A more relaistic estimate would be £60,000-£70,000 with £20,000 working capital (you would need to spend £10,000 immediately to restore the pub and protect your initial investment from the moment the doors re-opened). So, if there are 8 interested parties with £10,000 to commit, I'd join as the ninth and we could have a more serious conversation!!! Let's be `aving ya!
Surely that price would only be realistic when sold as a going concern. The pub is shut and I imagine the lease has now been returned (or reverts back) to the Brewery.
[cite]Posted By: Valley McMoist[/cite]We need a business plan first and foremost and a look at the books. I reckon a small pub like this could easily turnover £300k per year. I dont see any reason why a group of shareholders couldn't make a go of this
I think the turnover figures were posted on here some while ago when it originally went up for sale. With the pub closed, I reckon the bewery could be persuaded to accept £20,000. Probably need £10,000'ish working capital (stock etc.), so £500 x 60 of us = £30,000.
I'm in!
Why would the freholder accept £20,000 when there was an offer at auction in April of £69,000? There were several experienced publicans who also went to £50,000. A more relaistic estimate would be £60,000-£70,000 with £20,000 working capital (you would need to spend £10,000 immediately to restore the pub and protect your initial investment from the moment the doors re-opened). So, if there are 8 interested parties with £10,000 to commit, I'd join as the ninth and we could have a more serious conversation!!! Let's be `aving ya!
Surely that price would only be realistic when sold as a going concern. The pub is shut and I imagine the lease has now been returned (or reverts back) to the Brewery.
[cite]Posted By: Essex_Al[/cite]
[cite]Posted By: Cardinal Sin[/cite]
[cite]Posted By: Essex_Al[/cite]
[cite]Posted By: Valley McMoist[/cite]We need a business plan first and foremost and a look at the books. I reckon a small pub like this could easily turnover £300k per year. I dont see any reason why a group of shareholders couldn't make a go of this
I think the turnover figures were posted on here some while ago when it originally went up for sale. With the pub closed, I reckon the bewery could be persuaded to accept £20,000. Probably need £10,000'ish working capital (stock etc.), so £500 x 60 of us = £30,000.
I'm in!
Why would the freholder accept £20,000 when there was an offer at auction in April of £69,000? There were several experienced publicans who also went to £50,000. A more relaistic estimate would be £60,000-£70,000 with £20,000 working capital (you would need to spend £10,000 immediately to restore the pub and protect your initial investment from the moment the doors re-opened). So, if there are 8 interested parties with £10,000 to commit, I'd join as the ninth and we could have a more serious conversation!!! Let's be `aving ya!
Surely that price would only be realistic when sold as a going concern. The pub is shut and I imagine the lease has now been returned (or reverts back) to the Brewery.
Essex Al - There may be an ongoing action between the freeholder and the former landlord. Bottom-line is, they were offered £50-69k two months agao and will want to get close to that to re-lease the premises. A few enquiries are being made about this at the moment and more will be known next week. If anyone wants to whisper me on this, please feel free.
CS - Yes your right about possible legal action, no decisions regarding lease to be made yet. I'm no expert but wasn't that offer made to the landlord at auction, not the freeholder. There is a big difference between a going concern and a closed business. Didn't whisper this as apparently it's not working at the moment.
The last set of accounts shows an annual turnover of £236,898 (£4555.74 p.w.)
Sorry to jump in late on this discussion, I tried to talk to Clive on a number of occassions regarding the Oak - would definently be interetsed if a group were up for it
Keep me informed
(I've written a few business plans in my time if that helps)
I don't pretend to be any kind of expert on leases but I have a feeling that you can't sell the same lease twice.
When the current (now decamped) tenant purchased the lease from the previous tenant the lease was assigned to him as it is an ongoing lease.
If the current tenant has defaulted on the lease agreement the assignment would revert back to the prior leaseholder unless they have bought themselves out of the chain and, therefore, the liability - I understand this is the case in this instance. As there is no other prior leaseholder in the chain it then reverts back to the lessor - Enterprise.
The auction was for the purchase or assignment of the lease from the tenant as a going concern but now that it is reverting to the original lessor I'm not sure they can `sell' it again as they have already been paid for the lease. It may be `available' to someone with an acceptable business plan or they may be able to void the lease and offer a completely new one - I'm not sure on the technicalities of this option!
[cite]Posted By: Curb_It[/cite]Interesting points there Tony. so Cardinal could be way off on his estimate at what it could be bought for?
As I said I'm no expert but I think the auction stuff could be a bit of a red herring and not necessarily relevant if the lease has/is reverted to Enterprise.
Another thing, if the licence reverts to the original lessor, Enterprise ...... then they may wish, in the short term, to install just a manager and not a tenant.
Effectively, Enterprise would be responsible for the business, but install a manager to run the pub.
The manager then gets paid a salary plus 20% on sales revenue, for example.
That's exactly what's happening presently in one of my village pubs.
[cite]Posted By: Curb_It[/cite]Interesting points there Tony. so Cardinal could be way off on his estimate at what it could be bought for?
Well we won't know until we ask and perhaps make an offer.
I spoke to Enterprise Inns this morning and no decisions will be made until the legal issues with the previous landlord have been resolved. I have kept the number and was told to call back in a couple of weeks.
We could give him say 3 months and check the takings. Even if we are totaly potless we could give him the job for the end of the business year. If we find we then find we are broke/f**ked/aint got a shirt button/worst takings in the pubs history, we could have a think about it for 3months and then give him the job anyway.
mean we must run this like a proper business after all !!!!!!!!!!!!!!!!!!!
[cite]Posted By: Goonerhater[/cite]Oggy not a bad shout.
We could give him say 3 months and check the takings. Even if we are totaly potless we could give him the job for the end of the business year.
If we find we then find we are broke/f**ked/aint got a shirt button/worst takings in the pubs history, we could have a think about it for 3months and then give him the job anyway.
mean we must run this like a proper business after all !!!!!!!!!!!!!!!!!!!
Comments
People stop chatting and get on with it
Opening night Ipswich friendly
PV can be the one to cut teh tape
DA9 & GH on the door
MCS behind the bar
500 owners
You couldn't afford me mate :-)
I think the turnover figures were posted on here some while ago when it originally went up for sale. With the pub closed, I reckon the bewery could be persuaded to accept £20,000. Probably need £10,000'ish working capital (stock etc.), so £500 x 60 of us = £30,000.
I'm in!
Why would the freholder accept £20,000 when there was an offer at auction in April of £69,000? There were several experienced publicans who also went to £50,000. A more relaistic estimate would be £60,000-£70,000 with £20,000 working capital (you would need to spend £10,000 immediately to restore the pub and protect your initial investment from the moment the doors re-opened). So, if there are 8 interested parties with £10,000 to commit, I'd join as the ninth and we could have a more serious conversation!!! Let's be `aving ya!
I imagined that the brewery would accept a much lower bid just to get it open.
if you set up a committee and have a chair that would solve the problem surely
great idea.
Surely that price would only be realistic when sold as a going concern. The pub is shut and I imagine the lease has now been returned (or reverts back) to the Brewery.
Essex Al - There may be an ongoing action between the freeholder and the former landlord. Bottom-line is, they were offered £50-69k two months agao and will want to get close to that to re-lease the premises. A few enquiries are being made about this at the moment and more will be known next week. If anyone wants to whisper me on this, please feel free.
The last set of accounts shows an annual turnover of £236,898 (£4555.74 p.w.)
Keep me informed
(I've written a few business plans in my time if that helps)
When the current (now decamped) tenant purchased the lease from the previous tenant the lease was assigned to him as it is an ongoing lease.
If the current tenant has defaulted on the lease agreement the assignment would revert back to the prior leaseholder unless they have bought themselves out of the chain and, therefore, the liability - I understand this is the case in this instance. As there is no other prior leaseholder in the chain it then reverts back to the lessor - Enterprise.
The auction was for the purchase or assignment of the lease from the tenant as a going concern but now that it is reverting to the original lessor I'm not sure they can `sell' it again as they have already been paid for the lease. It may be `available' to someone with an acceptable business plan or they may be able to void the lease and offer a completely new one - I'm not sure on the technicalities of this option!
The auction brochure stated 21 years to run - I think it was a 25 year lease.
Thanks...
As I said I'm no expert but I think the auction stuff could be a bit of a red herring and not necessarily relevant if the lease has/is reverted to Enterprise.
Effectively, Enterprise would be responsible for the business, but install a manager to run the pub.
The manager then gets paid a salary plus 20% on sales revenue, for example.
That's exactly what's happening presently in one of my village pubs.
Well we won't know until we ask and perhaps make an offer.
http://www.charleswells.co.uk/home/business-opportunities/faqs
and this
http://www.pubs4sale.co.uk/explained.htm
I spoke to Enterprise Inns this morning and no decisions will be made until the legal issues with the previous landlord have been resolved. I have kept the number and was told to call back in a couple of weeks.
Perhaps we'll need a manager with recent experience ...... Parky?
;o)
We could give him say 3 months and check the takings. Even if we are totaly potless we could give him the job for the end of the business year.
If we find we then find we are broke/f**ked/aint got a shirt button/worst takings in the pubs history, we could have a think about it for 3months and then give him the job anyway.
mean we must run this like a proper business after all !!!!!!!!!!!!!!!!!!!
I LOLed out loud at this
I know the landlord of another local Enterprise Inn pub, so if anyone needs an area rep contact, advice etc give me a whisper and i'll find out