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Marston's agrees to operate 156 Brains pubs in Wales
StockMarketWire.com
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Pub owner Marston's said it had agreed to operate Brain's portfolio of 156 pubs in Wales, on a combination of leased and management contract arrangements.
Brains was a family business established in Cardiff in 1882 with which Marston's already had a longstanding relationship.
Marston's would operate 141 freehold pubs on a leasehold basis, with effect from February, with rent chargeable from April. The further 15 leasehold sites would be operated under management contract.
The majority of the freehold pubs would be operated on long lease agreements of 25 years.
Marsten's said their outlet level earnings before interest, tax, depreciation and amortisation on a pre-Covid basis was £14 million, with annual rent of £5.5 million.
Marston's would operate the 15 short-leasehold sites on a management contract basis for a period of two years.
The around 1,300 people currently employed in the pub business would transfer across to Marston's and an initial incremental central overhead of up to £2 million would be required to operate the additional pubs.
'As a consequence of the challenges of Covid, and in particular the recently announced more stringent additional trading restrictions in Wales, Brains' business has been under significant financial pressure,' the company said.
'In order to address Brains' immediate funding requirements, Marston's entered into collaborative discussions with the company with a view to preserving the freehold capital value for its stakeholders, protecting Brains strong, heritage brand name and, importantly, safeguarding the jobs of the pub teams within the business.'
Story provided by StockMarketWire.com
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