UK pub plunges into liquidation regardless of proprietor splashing £161k on grand revamp
The Seven Stars in the town of Kingsbridge, Devon, reopened in July 2021 after the “characterful” pub was transformed by Punch Pubs & Co sadly the pub has now fallen into liquidation
Liquidators have been appointed to a company managing the Seven Stars pub in Kingsbridge, Devon(Image: Getty)
Liquidators have been brought in for a pub management company despite the pub’s owner previously splashing out £161,000 on a major refurbishment. The Seven Stars in Kingsbridge, Devon, welcomed punters back through its doors in July 2021 following the “characterful” boozer’s transformation by Punch Pubs & Co.
However, insolvency specialists Robson Scott Associates have now been called in to handle Seven Star Holdings Ltd, the management firm operating the establishment. A creditors’ report pinpointed rising staff wages, soaring energy costs and dwindling footfall during the cost of living squeeze as the primary factors behind the business collapse.
Robson Scott Associates confirmed Seven Star Holdings Ltd was wound up through a Creditors’ Voluntary Liquidation procedure, which continues to progress.
A CVL occurs when a firm’s shareholders or bosses opt to shut down operations by entering liquidation due to their inability to settle outstanding debts, reports the Express. Seven Star Holdings Ltd’s property portfolio belongs to Punch Pubs & Co, which manages a portfolio of leased and tenanted drinking establishments nationwide.
Whilst Punch Pubs & Co. owns the bricks and mortar of its chain establishments, landlords maintain complete autonomy over their operations, handling recruitment, staff management, and customer relations amongst other responsibilities. It is understood Seven Stars boozer has altered its limited company designation.
However, the management team, the workforce, and the day-to-day operations continue unchanged. The appointment of liquidators to Seven Star Holdings Ltd emerges as Revolution bars’ parent company, The Revel Collective, shut 21 establishments resulting in 591 redundancies following the appointment of administrators.
FTI Consulting has stepped in as administrators for the pub and bar operator, which cited battles against escalating overheads and diminished consumer expenditure – particularly amongst its younger demographic – for the closure.
The immediately affected closures encompass 14 Revolution bars, six Revolucion de Cuba establishments, and one Peach Pub.
Nevertheless FTI has confirmed two separate agreements safeguarding 41 locations and 1,582 positions. The Daily Star previously reported on Chancellor Rachel Reeves‘ move to throw pubs a life line after the government has announced boozers and music venues will get 15% off their business rates bills from April as part of a major support package.
The development comes after fierce criticism of Budget measures as the change marks yet another U-turn from the Labour government.
Yesterday (January 27), Treasury minister Dan Tomlinson said the property tax bills in England will then be “frozen in real terms” for the next two years.
Mr Tomlinson told MPs: “This week is also independent venue week, so it’s particularly appropriate that I can announce also that our package will apply to music venues too.”
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