A rescue deal to save 16 pubs across the North East is being sought after the company behind the venue collapsed and administrators brought it.
Milton Portfolio Property 3 Limited, which owns 25 pubs in the North of England, 16 of which are in the North East, North Yorkshire and Northumberland, are in jeopardy after administrators were called into the group this week.
Despite the uncertainty behind the business, all 264 staff who work across the 25 venues have been kept on, as the company continue to trade.
Administrators are now looking for a pub group or company to take over the venue portfolio.
Property investment and hotels firm Aprirose, the parent of the Milton companies, acquired the former Wear Inns pubs five years ago in a £22.4m deal.
The administrators have said the venues are strong performers and most recent accounts for the owners say the business has historically been highly profitable and cash generative.
A review within the accounts says: "Since pubs were finally allowed to re-open, most recently from mid-April 2021, they have again returned to profitable trading whilst the lingering effects of Covid coupled with ongoing cost pressures due to the energy crisis, high inflation and rising interest rates continue to affect customer attitudes and spending.
"Further funding received from investors in combination with further Government backed loan facilities through the Recovery Loan Scheme have been received and utilised to finance a capital expenditure programme to transform a number of the company's pubs, enhancing their performance.
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"Despite ongoing uncertainty surrounding the journey back to normality, the directors believe that trading in general will continue to slowly."
Ryan Grant, managing director at Interpath Advisory, said: "This is a portfolio of profitable, strong performing and established pubs, comprising 21 freeholds and four long leaseholds, located across the North East of England and Yorkshire.
"We will be appointing selling agents in due course, with a view to bringing the portfolio to market at the optimum time to realise maximum value for creditors."
The list of pubs involved in the North East, North Yorkshire and Northumberland includes:
- Black Bull, East Boldon
- Black Bull, Morpeth
- Britannia, Houghton-Le-Spring
- Cross Keys, Washington
- Dirty Habit, Whickham
- Dirty Habit, Whitley Bay
- Elephant, Ashington
- Greens, Sunderland
- Guide Post Inn, Springwell Village
- Lambton Arms, Chester-le-Street
- Millstone Hotel, Gosforth
- Prior, Doxford Park
- Priory, York
- Ship & Royal, South Shields
- Smiths Arms, Billingham
- Victoria, Whitley Bay
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