Relief as county escapes round of pub job cuts (From Daily Echo)

Relief as county escapes round of pub job cuts

8:11am Tuesday 1st April 2008 in Hampshire Business By Echo Business

SCORES of Hampshire workers for pub brands Yates' and Slug and Lettuce are breathing a sigh of relief after escaping massive job cuts.

The Laurel Pub Company, owners of 16 bars and restaurants in the region, collapsed into administration late last week.

More than 800 jobs across the country were lost when 90 loss-making branches were cut adrift from the main group by administrators Kroll.

The 16 Hampshire outlets, which include two major venues in Above Bar, Southampton, were among 293 profitable sites sold to Bay Restaurants and Town and City.

Laurel was owned by Iranian property tycoon Robert Tchenguiz, who also funds both Bay Restaurants and Town and City.

He and his brother Vincent are thought to be worth about £850m.

The company's decision to go into administration is understood to be due to a combination of £8.6m outstanding in unpaid rent, the smoking ban and the effects of the credit crunch.

Alastair Beveridge, from Kroll, said: "The sale was secured swiftly in order to protect the business and its operations and will help ensure continuity for both customer and supplier relationships and for the majority of employees."

The British Beer and Pubs Association claims that the combination of the smoking ban, a decline in drinking and the credit crunch are responsible for 27 pubs a week calling final time across the country.