A small Berkshire town has 3 public houses. One of these, the one not making any money, is a privately owned and operated independent establishment, the other 2 belong to large breweries. The 2 owned by the breweries have been subjected to significant refurbishment and modernisation programmes. They are both now trendy bistro and gastro pubs, popular with young families and commuting professionals, new residents to the area are flocking to them, their businesses flourish. The 3rd public house which Isn’t making money and cannot compete looks shabby by comparison, is a little tired both inside and out, but the locals like it that way, it is “comfy” and “smells” like a pub. It’s a good place for a pint and a bag of crisps, perhaps a chat with a familiar face you’ve known for years, on Thursday evenings there’s a darts match but it’s customer base is dwindling.
The owners of this 3rd public house are acutely aware that something has to change and soon. Revenues are falling, bills are mounting, maintenance issues are being ignored, the place is becoming something of a liability. The financial records show a deteriorating position, the bank are being unhelpful and the owners have poured their life savings into the business with little prospect of seeing it return. The bank demands a review of the business and a report confirms that the business is losing money and that at best, it’s worth £425,000, lock stock and barrel.
With 2 other very successful modernised public houses a short stroll away, the owners face ruin. What can success do for them? The property is detached, it sits on a corner plot at a crossroads in the town. The plot extends to 1.2 acres with car parking area and beer garden and it has vehicular access on both sides of the main building. Drawing up a scheme to construct a block of 14 luxury contemporary residential apartments with parking and a small communal garden secures a new value of £1.2 million pounds. The owners face no fees, they are relieved of their business, it’s problems and its assets and take the offer. This corner of the town has a new landmark apartment block and it lifts the value of neighbouring properties whilst also kick starting a regeneration of this end of the town. The owners future, a small Bed and Breakfast business in a picturesque south coast town could be beckoning. Success!
