Eldridge Pope sells off pubs to reduce debts

From the Echo, first published Thursday 2nd Oct 2003.

TROUBLED Eldridge Pope is selling 23 pubs for a total of £5.4 million in a bid to reduce its £44.5 million debts.

The Dorchester-based firm is getting rid of at least 12 per cent of its empire of 186 pubs across the South.

Local pubs affected include The New Star Inn, Portland, Portsmouth Hoy, Poole, Carpenters Arms, Bransgore and the Tippling Philosopher, Sherborne.

Officials at Dorchester announced to the Stock Exchange that they had exchanged contracts for the sale of 18 pubs (eight leasehold, 10 freehold) to the Inntown Pub & Property Company.

They are being sold for £3.9 million in cash - less than six months after they were valued at £5.5 million on April 5 this year.

Last year the 18 pubs together made profits of £200,000 but were only break-even in the six months to April 5. Five more pubs - including the Portsmouth Hoy at Poole Quay - have been sold to a variety of purchasers for a total £1.5 million in cash with completion expected by tomorrow.

The five were together originally valued at £3.1 million on April 5.

They made losses of £200,000 for the year ended September 30, 2002, and £300,000 for the six-month period ended April 5 this year.

Chief executive Susan Barratt said: "The disposal of these pubs is a further step in our back-to-basics strategy which has already seen improved trading performance."

Eldridge Pope had been at the centre of a £7.9 million takeover battle involving two bidders - Jersey retail and brewing group CI Traders and SDA Ltd, which is owned by former Weymouth pubs supremo Michael Cannon.

Mr Cannon tabled a 165p per share offer for 19.31 per cent of Eldridge Pope but the board urged shareholders to reject it.

Last month it was reported that CI Traders had pulled out of the race.

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