Wetherspoons announces it will sell off 32 pubs across the UK as it faces £30m losses

Wetherspoons announces it will sell off 32 pubs across the UK as it faces £30m losses 2
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Punters have shared their fears that jobs will be at risk and cheap pubs which are a ‘lifeline’ for communities may be lost when Wetherspoon sells 32 of its pubs across England. 

The hospitality chain, which operates 800 pubs across the UK, said it has made the ‘commercial decision’ after previously warning it could face losses of up to £30million.

In a statement, company spokesman Eddie Gershon said: ‘On occasion, Wetherspoon does put some of its pubs up for sale. This is a commercial decision.

Scroll down to see the full list of pubs up for sale. 

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Wetherspoons announces it will sell off 32 pubs across the UK as it faces £30m losses 3

The Capitol, in Forest Hill, London, is one of the 32 Wetherspoon pubs that have been put up for sale

The Capitol, in Forest Hill, London, is the only listed building to go up for sale out of the 32

As many as four in ten pubs will be closed by this time next year 

As many as four in ten pubs could be closed by this time next year, according to landlords, managers and owners.

Due to the cost of living crisis and without the help many wanted from last week’s mini-budget, pessimistic publicans believe they will have called time on their tavern by September 2023.

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Only 59 per cent of UK pub managers and owners think they will still be in business in 12 months’ time, according to an ongoing bi-monthly survey of 200 pubs by Peckwater Brands.

It also showed those at the sharp end of the hospitality industry are losing faith in Liz Truss and her new cabinet – just 39 per cent now have confidence in the government, largely as a result of Kwarsi Kwarteng’s lack of help in his first budget.

Pubs – like bars, restaurants and hotels – are suffering from rampant inflation, lack of staff and high taxes and want to see measures that can help them manage costs without pricing out customers.

Two thirds of pub bosses – 68 per cent – want to see a cut in business rates, the same number want a cut in VAT and and 62 per cent want a change in visa rules to allow more foreign nationals to fill vacancies, particularly seasonal ones during busy periods.

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‘We understand that customers and staff will be disappointed with it. The pubs will continue to operate as Wetherspoon outlets until they are sold.’

Customers were left concerned that if the pubs were taken over by other proprietors, the more affordable option for many friends and families who still want to enjoy socialising in the pub atmosphere despite the cost of living crisis.

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Kevin Cummins wrote on Twitter: ‘OK so 32 Wetherspoon pubs are being sold off. It might not be your thing but it allows people on low income/benefits to use a neighbourhood pub at a reasonable price.

‘With energy prices as they are, it’s cheaper for people to spend an afternoon in ‘spoons.

‘When ‘spoons in Balham closed, it reopened as a generic £6.50 a pint pub. The same beer that was £2.50 was now £4 a pint more.

‘How is that catering for marginalised people? I don’t give a toss about Tim Martin but I care about people without a neighbourhood pub.’

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Another added: ‘I sometimes walk past the Water House in Durham. 

‘It always seems to be full, is over the road from the bus station and near taxi ranks so ideally placed for lifts on a night out.’

A third Twitter user added: ‘I’ve been a lonely outlier on Wetherspoons before and I’ll do it again.

‘It’s a lifeline for the poor, elderly people in society who are placeless and employs many in our communities.

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‘Cheering its downfall as you don’t have the same political opinion as its owner tells us all lots about you.’

Meanwhile, Adam Brooks, a publican and social commentator, added: ‘My local Wetherspoons is being sold, prime High Road position in an area with very affluent people but also nearby council estates.

Wetherspoons announces it will sell off 32 pubs across the UK as it faces £30m losses 5

Wetherspoons announces it will sell off 32 pubs across the UK as it faces £30m losses 7

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Wetherspoons announces it will sell off 32 pubs across the UK as it faces £30m losses 9

‘If they are pulling out, imagine how hard the Independents are finding it. It will be a matter of “use it or lose it” for many local pubs this winter.’ 

Savills and CBRE will market the 32 properties which contain a combination of 10 freehold and 22 leasehold units.

The portfolio lists all 32 properties with annual rent ranging from £47,500 for the Malthouse in Willenhall to £288,000 for Penderel’s Oak in Holborn. 

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Paul Breen, Director at Savills commented: ‘Following the success of our earlier marketing campaigns for JD Wetherspoon we are delighted to be launching these 32 properties to the market.

‘These venues are well configured and fitted to a high standard which will make them appealing to a broad range of potential buyers.’

Wetherspoons announces it will sell off 32 pubs across the UK as it faces £30m losses 11

Wetherspoons announces it will sell off 32 pubs across the UK as it faces £30m losses 13

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Agents said the sales represented a ‘rare opportunity to acquire substantial, landmark public houses with a high standard of fit out in high profile locations’.

Staff are expected to be transferred with the pubs ‘upon completion’, the agents said, in accordance with regulations. 

Other pubs going up for sale include the Rising Sun in Redditch and the Resolution in Middlesborough.

One of the biggest pubs up for sale is the Grade II listed Capitol pub in Forest Hill, south east London.

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The building started life as a cinema in the 1920s and remained one until the 1970s when it was transformed into a Bingo Hall until 1996.

The building still has the former cinema circle which is now used as managers’ officers and storage.

It is the only listed building to be included in the pubs which are going up for sale. 

Earlier this year, Wetherspoon’s boss Tim Martin warned of ‘considerable’ pressure on costs as staffing and energy bills jumped amid concerns that the pub chain could have to raise prices.

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Pub goers saw an increase in prices include a 20p rise for a pint in London. 

Hope & Champion is the only pub not to be situated in a town or city as it is at a service station

Hope & Champion is the only pub not to be situated in a town or city as it is at a service station

Wetherspoon's are famous for affordable beer and food, interesting carpets and historic buildings, but boss Tim Martin makes sure his establishments are incredibly clean

Earlier this year, Wetherspoon’s boss Tim Martin warned of ‘considerable’ pressure on costs as staffing and energy bills jumped amid concerns that the pub chain could have to raise prices 

In total, 32 pubs are going up for sale including the Christopher Creeke pub in Bournemouth

In total, 32 pubs are going up for sale including the Christopher Creeke pub in Bournemouth

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In the wake of the Chancellor’s ‘mini budget’ earlier this week, Martin then warned the proposed freeze on alcohol duty would not go far enough to help pubs as business chiefs warned hospitality jobs remained ‘on a knife edge’.

Responding to the announcement, Mr Martin told MailOnline: ‘An alcohol duty freeze is welcome but the real problem for pubs is that pay far higher business rates per pint than supermarkets and, in addition, pubs pay 20 per cent VAT on food sales and supermarkets pay nothing. 

‘So long as this inequality persists, pubs will decline and supermarkets will thrive.’

Which Wetherspoon pubs are set to be sold off by the company? 

These Wetherspoon locations are set to be sold off: 

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Barnsley – Silkstone Inn

Beaconsfield – Hope & Champion

Bexleyheath – Wrong ‘Un

Bournemouth – Christopher Creeke

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Cheltenham – Bank House

Durham – Water House

Halifax – Percy Shaw

Hanham – Jolly Sailor

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Harrow – Moon on the Hill

Hove – Cliftonville Inn

London Battersea – Asparagus

London East Ham – Miller’s Well

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London Eltham – Bankers Draft

London Forest Gate – Hudson Bay

London Forest Hill – Capitol

London Hornsey – Toll Gate

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London Holborn – Penderel’s Oak

London Islington – Angel

London Palmers Green – Alfred Herring

Loughborough – Moon & Bell

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Loughton – Last Post

Mansfield – Widow Frost

Middlesbrough – Resolution

Purley – Foxley Hatch

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Redditch – Rising Sun

Sevenoaks – Sennockian

Southampton – Admiral Sir Lucius Curtis

Stafford – Butler’s Bell

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Watford – Colombia Press

West Bromwich – Billiard Hall

Willenhall – Malthouse

Wirral – John Masefield

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Britain’s oldest brewer Shepherd Neame warns rising energy costs will delay its return to pre-pandemic profit levels

BY HARRY WISE FOR THIS IS MONEY 

Shepherd Neame has bounced back to profit but warned that a full recovery would take ‘longer than originally anticipated’ due to major inflationary pressures.

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Britain’s oldest brewer does not expect to reach pre-pandemic levels of profitability until 2024/25, given the impact of surging gas and electricity prices on consumers.

Energy shortages have partly driven costs significantly higher at the Kent-based firm, as have the imposition of higher National Insurance and minimum wage rates and the end of a reduced VAT rate for the hospitality sector in April.

Warning: Britain's oldest brewer does not expect to reach pre-pandemic levels of profitability until 2024/25, given the impact of surging gas and electricity prices on consumers

Warning: Britain’s oldest brewer does not expect to reach pre-pandemic levels of profitability until 2024/25, given the impact of surging gas and electricity prices on consumers

This did not stop it from rebounding to a £6.3million profit in the year to June, against a £17.8million loss in the previous 12 months, when lockdown restrictions forced pubs to remain shut for much of the time.

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Trade was boosted by healthy sales at its tenanted pubs and venues outside the M25, which both saw total income rise just ahead of pre-pandemic volumes and more than double from last year on a like-for-like basis.

Footfall outside London and in seaside areas remained relatively upbeat amidst the growth in remote working and Britons taking domestic holidays.

Demand in the capital was also hurt by rigid cross-border travel rules hampering inbound tourism and the Omicron variant’s emergence discouraging people from travelling to their office.

Shepherd Neame revealed retail sales in pubs within the M25 were 30 per cent down on 2019 levels despite rocketing 263 per cent annually.

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Its chief executive, Jonathan Neame, said trade at its city centre outlets will take a bit more time to return to pre-Covid levels, while international tourism is not predicted to recover until 2024.

Recovery: Shepherd Neame chief executive Jonathan Neame (pictured) said trade at its city centre outlets will take a bit more time to return to pre-Covid levels

Recovery: Shepherd Neame chief executive Jonathan Neame (pictured) said trade at its city centre outlets will take a bit more time to return to pre-Covid levels

For the upcoming winter, Neame warned that sales would likely soften as consumers’ disposable income is squeezed by higher energy and fuel prices. 

These factors will also lead to the company paying more for goods like glass and carbon dioxide, which is commonly used to prevent beer from going stale.

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Yet Neame expressed confidence that the company would be able to ‘deal with these issues as they arise.’ 

He added: ‘Whilst the road to full recovery may take slightly longer than originally anticipated as a result of inflationary pressures, the next few years may also present some great long-term opportunities for the business, and so we look forward to the future with confidence. 

In a widely-criticised ‘mini-Budget’ last week, Chancellor Kwasi Kwarteng declared that planned alcohol duty rate hikes would be scrapped, a move that could save drinkers about 7p on a pint of beer.

This came soon after the UK Government announced that energy prices for firms would be capped for six months from the start of October at a potential cost of up to £150billion for the taxpayer. 

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Hospitality bosses have broadly welcomed both the measures but still said that further assistance would be needed to tackle costs and ensure the sector thrives over the long term. 

UKHospitality chief executive Kate Nicholls urged the government to lower VAT rates and find an alternative to the business rates regime or risk the loss of thousands of jobs and businesses. 

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