Park Street pub chain defies economic slump (From St Albans & Harpenden Review)

Park Street pub chain defies economic slump

12:03pm Monday 29th December 2008

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A PUB group based near St Albans has been rescued from collapse by a local firm which has managed to save the bulk of its licensed premises.

The St Albans branch of accountants PricewaterhouseCoopers in Bricket Road was appointed on December 13 as official administrator of the Orchid Group's 287 pubs across Britain, and its head office in Burydell Lane, Park Street.

Now the chain and its head office have been sold to a new company formed by existing managers, although it continues to trade under its old name.

The group, one of the largest pub chains in Britain with more than 6,500 staff, had been hit by national trends affecting the whole sector, such as the economic slump, competition from supermarkets and the smoking ban of July 2007.

David Chubb, partner at PricewaterhouseCoopers and joint administrator of the Orchid Group said: “We are extremely pleased to have been able to effect an immediate sale of this business, particularly in the lead up to the festive season. Through the sale of the business, we have been able to save at least 240 of the group’s pubs and 5,300 jobs across the UK.”

Only 14 of the pubs have been closed, while 32 have been sold , and another firm has an option to buy more, with the new company, still based in Park Street, running about 240.

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