Interpath selected for RedCat administration

10 April 2024 Consultancy.uk 2 min. read

After a period of financial distress, RedCat Leased Pubs has fallen into administration. The a subsidiary of UK pubs operator RedCat Group formerly operated 10 pubs across the UK, predominantly in London and the south east.

Formed by former Greene King boss Rooney Anand in 2021, RedCat Pub Company has since grown to more than 100 sites across the UK. Part of that sizeable operation was RedCat Leased Pubs – a subsidiary of 10 leasehold pubs.

While the organisation launched after the worst of the lockdown era, since which footfall has slowly increased for the UK pub trade, the business has been severely affected by the wider headwinds impacting the industry. These include huge increases in energy costs, falling consumer spending power amid the cost-of-living crisis, and a hangover in consumer habits from the Covid-19 pandemic.

Interpath selected for Red Cat administration

In the company’s last financial year leading to April 2023, it reported a turnover of £5.2 million, but a pre-tax loss of £6.5 million – while the company’s net liabilities stood at close to £7.6 million. With the situation apparently having not improved in the following year, the loss-making division was reportedly faced with being unable to meet its financial obligations.

As a result, Nick Holloway and Steve Absolom of Interpath Advisory have been appointed as joint administrators, and have commenced a process to market the business, assets and leases of the pubs for sale.

Holloway, a managing director with Interpath, commented, “RCLP comprises a group of pub sites in prominent locations, predominantly in London and the south-east. Financial challenges have weighed heavily on the company in recent years, which rendered it unable to continue in its current form.”

Following their appointment, the administrators have announced three RCLP sites will remain open under sub-tenant agreements. These are the Garden Farm in County Durham; the Railway Tavern in North London; and the Cumberland Arms in West London. At the same time, the Bull Inn in Kent, and the Occasional Half in North London will continue to trade as managed assets.

However, RCLP’s five other sites have closed. The Redback in West London; the Chiltern Taps in Buckinghamshire; the Elmbridge Arms in Surrey; the Gatehouse in Kent; and Colton Arms in West London have all been shuttered.

Holoway added, “The administration now provides a period in which we can undertake a marketing process to explore a sale of business and assets of the pubs either individually or as a group. We expect interest from across the industry. Regrettably, the financial position of the business means five sites have now closed.”