A significant pub chain in London has entered administration, with 13 bars in danger of going out of business.
Some of these pubs have been having difficulties since the Covid outbreak, according to the Antic Hospitality Group, which runs a number of well-known pubs in south and east London.
The collapse was revealed this week by the group, on July 12.
Complete list of bars that could close
- Dogstar (Brixton)
- Gremio de Brixton (Brixton)
- Balham Bowls Club (Balham)
- East Dulwich Tavern (East Dulwich)
- Tooting Tram and Social (Tooting)
- The Sun (Camberwell)
- Antelope (Tooting)
- Clapton Hart (Clapton)
- The Elephant and Castle Pub (Elephant and Castle)
- Hagen & Hyde (Balham)
- Graveney & Meadow (Tooting)
- Red Lion (Leytonstone)
- Coopers (Crystal Palace)
It is understood that these bars will keep operating as usual while the administration takes place.
The managing director of Interpath Advisory and joint administrator, Steve Absolom, stated: “This is an eclectic collection of well-known and popular pubs and bars located in prime sites across south London.
“The sites are expected to continue to trade as usual with the support of specialist trading agents at Licensed Solutions.
“We intend to bring these units to market in due course, representing a fantastic opportunity for investors and trade purchasers alike.”
According to Interpath, the impacted locations have been having difficulties because of the "legacy liabilities" resulting from the Covid-19 epidemic. Nonetheless, Antic has encountered difficulties previously. Twelve bars operated by its subsidiary, Antic Limited, went into administration in 2013 due to tax-related issues. Fortunately, all 12 were bought in less than a month.
How does administration work?
Upon a corporation going into administration, the designated administrator becomes the sole controller.
To pay off any unpaid debts to creditors, the administrator must use the company's resources and operations.
When a business goes into administration, a "moratorium" is imposed, meaning that it is immune to legal action.
Administrators notify Companies House and creditors in writing that they have been appointed. They work to prevent the business from going out of business and, if they are unsuccessful, they use the remaining assets to settle as much of the debt of the company as possible.
The administrator is given eight weeks to draft a statement outlining their strategy for advancing the company's operations.
Similar to a regular administrative procedure, a Notice of Intention prevents creditors from suing a corporation while the company works to make corrections.
