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News
Major moves in the on-trade
The last week was a busy one for the on-trade in the UK. Greene King announced significant restructuring to its business, Punch Taverns started the process of selling up to 1,000 venues, and rumours of a buyout of Whitbread’s health club business emerged.
The reorganisation at Greene King involved the split of its managed pub division into two separate parts, making differences between venues more distinct. The 280 food-led venues in the group will now be run by Jonathan Webster, while 510 wet-led sites will be controlled by Jonathan Lawson, formerly at Sainsbury’s convenience stores. This restructuring, according to Greene King, will be complete by the end of April.
The impending smoking ban is said to be the reason behind Punch Taverns’ decision to sell up to 1,000 of its wet-led pubs in the coming months. This move follows a number of similar sales in recent times by rival groups such as Enterprise Inns. There has been speculation that property tycoon Robert Tchenguiz is likely to bid on either the 1,000 pubs, or the pub group itself. These rumours have significantly increased Punch Taverns’ share price.
There was speculation this week about a takeover bid for Whitbread’s health club chain. The company has not yet decided to sell its David Lloyd chain, but has apparently received a number of offers. The chain may fetch up to £1 billion. Whitbread, who also owns the Premier Travel Inn chain, has property worth more than £4bn.
© db 28 March 2007