Falling sales could force cut-price sell-off for Po Na Na

Po Na Na is finding it harder than expected to sell off seven of its late-night bars, and may have to dispose of them at a lower price.

The company said in June it planned to dispose of the seven underperforming bars, which were subsequently closed in September.

Since then Po Na Na has off-loaded only two of the units and, with losses continuing, has been forced to add another two sites to the list earmarked for disposal. It said last week that it was reviewing the value of the sites.

The hold-up has also delayed its new openings schedule, as Po Na Na had been intending to plough proceeds from the sales back into new sites.

In the six months to the end of September, the seven underperformers cost the company £260,000.

The situation has been compounded by sluggish trading this year, with sales in the last quarter of the financial year less buoyant than in the preceding three months and "marginally" below expectations, the company said.

Nevertheless, Po Na Na said it expected sales for the year to the end of March to come in at about £35m, up 16% on the previous year. At its half-year results, for the six months ended 30 September, sales were 30% ahead of the year before.

Full-year results are due to be published in June.