Cains Beer Company looks for family backing to save pub chain

30 July 2008 by
Cains Beer Company looks for family backing to save pub chain

Troubled Cains Beer Company could look to do a debt-for-shares swap in a bid to save the business according to reports today.

The Liverpool Echo claimed today that the Dusamj family, the backers behind Merseyside brewer and pub operator, would look to convert £2.56m worth of loans they made to the company last year into new shares.

Cains is looking for its financial backers Bank of Scotland to secure its debt and funding after it reported a £4.5m loss on Monday.

It also expects a verdict from negotiations with HM Revenue & Customs (HMRC) over the outstanding payment of duty in the next 24 hours.

Chief executive Sudarghara Dusanj was quoted as saying: "It is a new injection of cash which shows that the family is backing the business."

Cains Beer Company was formed in May 2007 when Robert Cain & Co Brewery entered into a reverse takeover of 100 strong pub estate Honeycombe Leisure.

It is believed that its pubs employ 900 people with a further 100 staff working in the Liverpool brewery.

Read the Liverpool Echo story here >>

Cains looks for further funding to stave off collapse after £4.5m loss >>

Honeycombe secures future with reverse takeover >>

By Christopher Walton

E-mail your comments to Christopher Walton here.

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