Bar and restaurant group in talks
The struggling group behind the Living Room bar and restaurant chain has agreed a deal with racecourse owners Reuben Brothers which could lead to its sale.
Reuben Brothers said it had entered into a period of exclusivity with Premium Bars & Restaurants (PBR) - which also trades as Prohibition Bar & Grill and Bel and The Dragon - to acquire the restaurant, bar and club operator for approximately £52 million.
PBR has around 50 bars, nightclubs and restaurants across the country as well as two hotels, The Waterside on Newcastle's quayside and The Rex in Whitley Bay.
It said it had agreed "not to solicit further approaches from any other potential purchasers during the exclusivity period", which will expire on or before July 31.
Reuben Brothers said it would bring "expertise in the real estate and leisure sectors" through its other business interests.
These include Criterion Asset Management, which manages the 850-strong Wellington Pub Company estate and Motcomb Estates, which operates a portfolio of three Riverside Hotels and other real estate assets.
David and Simon Reuben's investments also include Northern Racing, the owner and operator of ten UK racecourses including the recently launched Ffos Las racecourse in Wales.
"Through this wealth of experience, the Reubens will apply strong management disciplines to the business to improve the performance of the assets," a statement from Reuben Brothers said.
It said it plans to acquire all of the freeholds and most of the leasehold properties from PBR and said "few changes" will be made to management.
Shares in Cheshire-based PBR were suspended in December 2008 after the company was unable to issue full-year accounts.
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