Cheltenham landlords say recession is to blame for closure of four pubs
A COUPLE from Bishop's Cleeve have filed for bankruptcy after calling time on their four county pubs.
David McLean and his partner Jan Minett say the financial climate has caused them to lose their businesses at The Shutter Inn in Gothertington, The Little Owl pub in Charlton Kings, Ye Olde Hobnails Inn in Little Washbourne near Tewkesbury, and The Orchard in Quedgeley.
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Regrets: David McLean at The Shutter Inn, Gotherington, which he ran with his partner Jan Minett.They have had to declare bankruptcy. The Shutter Inn is now being looked after by Jan's son Chris Minett and David and Jan are helping out there. Also pictured is Jan's daughter Louise Minett
Customers were left scratching their heads when one after another of the pubs shut.
Two are now open again with new owners and a third is expected to reopen soon.
The couple said bankruptcy was the last resort and they were devastated to have had to close their businesses.
David thanked all those who supported them but said there was no other way to carry on.
"The breweries, Enterprise Inns and Admiral Taverns, did everything they could to help and support us," he said.
"But unfortunately the downturn in trade was just too much. Hobnails was flooded out in 2007 and although we tried hard to build ourselves back up again, the signs of recession kicked in.
"We tried to change and adapt by introducing a Sunday carvery but the margins just got too small. We put the prices down but we needed high numbers to cover it all and unfortunately it didn't happen."
He said publicans across the region were facing similar problems.
"The pub trade is really suffering and it's not just us. It's been a nightmare and an emotional strain as we've tried to think of every other way to stay open," he said.
The Orchard pub has now been signed over to the former manager who helped run it alongside Jan and David.
New owners are expected to take over Ye Olde Hobnails in the next few weeks and The Shutter Inn is now in the care of Jan's son, Chris.
David entered the pub trade eight years ago having formerly worked in sales and project management.
He said: "We're in the process of losing everything to pay back what we can but we're helping him to look after the place and hopefully, at least for him, it will work out."
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by Rod, Barnwood
Monday, July 05 2010, 9:37PM
“4p a can to 50p per can - whatever, supermarkets win every time for me!
You can get merry at home safely, cheaply, smoke anything you , no petrol used and even better unlike in pubs you don't have to talk to anyone other than your loyal cat/dog/budgie.”
by AntiPC, Derby
Monday, July 05 2010, 7:54PM
“To correct the first huge error in this article Enterprise Inns are not nor never were a brewery - they are a property speculator with debts far in excess of their companies worth. They have massive buying power but, unlike Wetherspoons, take a massive ammount of the discount achieved to service their debts. This leaves their "business partners" struggling to make a profit even charging £3 a pint. As for the supermarkets they appear to be selling at a loss - if you remove the VAT and duty from their offer prices they sell for as little as 4p a can. Im sure you'll all agree that to brew the beer, can it, pack it, transport it and stack it on a shelf would cost far in excess of 4p. The supermarkets will receive a VAT rebate if they sell below cost and other items will be increased to compensate for the loss so, guess who pays through the nose for your cheap supermarket beer? Yes, that's right, you do everytime you pay for your weekly groceries”
by Nobby, Gloucester
Monday, July 05 2010, 4:56PM
“David, I paid 30p per can (440ml) of Strongbow in Sainsbury's on Saturday! I think that works out at 40p per pint. Now why would I want to spend £3 for the same drink probably less cold than I can have my fridge turned down to, Then add on the petrol to get to pub, maybe parking charges if in town, suffering to having to drink overpriced 'pretend' lemonade (postmix syrup) as I won't be able to drink more than 1 pint of cider to drive home legally, not being able to smoke, missing TV programmes, missing e-mails etc etc.
No wonder pubs are closing!”
by geraint, gloucester
Monday, July 05 2010, 4:38PM
“Leaving aside city and town-centre watering holes favoured by late night revellers, the pub trade has been in decline for years and, regardless of what some may say, the situation has become very much worse since the smoking ban.
I certainly hope that plenty of our well run Free Houses will continue to survive and prosper. However I'm really not bothered about the fate of pubs where the owners feel it their right to make a handsome profit on the backs of their cash-strapped managers and tenants.”
by Matt H, Cheltenham
Monday, July 05 2010, 4:02PM
“I know that a freehouse landlord can buy a barrel for (say) £100, yet a neighbouring tenant landlord at an Enterprise Inns pub has to buy the same barrel through the pubco for £130. The tenant landlord therefore has to sell a pint at a higher price than his freehouse neighbour, meaning the customers go to the cheaper freehouse. Simple economics.
The big pubco's are in it to make as much money as possible, and tie their tenants into contracts to buy beer from them at inflated prices. The tenant landlord cannot complete, and is (pardon the pun) held over a barrel.
Additionally, the big pubco's encourage their landlords to invest in the business, often bringing a new landlord in when a pub us refurbished. The new landlord invests a chunk of his own money into the refurb, but if he can't make the business work once re-open and leaves, he doesn't get his investment back.
As Steve says, if you can't afford to buy a freehouse, don't go into the pub trade.”