Luminar Group sells 26 bars to Cavendish

17 April 2008 by
Luminar Group sells 26 bars to Cavendish

Late-night club and bar operator Luminar Group has sold 26 bars for 19p each to Cavendish Bars trimming down its total estate to 90 sites.

Cavendish, a new operator headed up by the former chief executive of bar chain Po Na Na, Christian Arden, will buy the leasehold clubs and bars as a collection of five individual companies, worth £1 each.

Luminar said it will also pay Cavendish £800,000 to take on the leases and make a near £10m loss on the deal.

The disposal removes Luminar from any liabilities on sites it previously sold to Candu Entertainment Group, which entered administration last month.

Stephen Thomas, Luminar chief executive said: "The disposal completes the strategy of streamlining the group's activities. It releases the group from liability for those units going forward and from the cost of having them on our books."

Thomas defended the performance of Luminar against a backdrop of rival operators, including Candu and Soho Clubs & Bars, entering administration in recent weeks.

"With a clear strategy we have built a strong business that is positioned well in its market place and will continue to generate significant sums of cash."

In a note on the deal, City analyst firm Charles Stanley Securities said: "Whilst this deal demonstrates strides are being taken by the group to exit poor sites, it also confirms how tough the late night segment of the market remains."

Sports Café owner acquires late night bar firm >>

Novus snaps up seven bars from Soho Clubs & Bars >>

Preparing for insolvency >>

By Christopher Walton

E-mail your comments to Christopher Walton here.

The Caterer Breakfast Briefing Email

Start the working day with The Caterer’s free breakfast briefing email

Sign Up and manage your preferences below

Check mark icon
Thank you

You have successfully signed up for the Caterer Breakfast Briefing Email and will hear from us soon!

Jacobs Media Group is honoured to be the recipient of the 2020 Queen's Award for Enterprise.

The highest official awards for UK businesses since being established by royal warrant in 1965. Read more.

close

Ad Blocker detected

We have noticed you are using an adblocker and – although we support freedom of choice – we would like to ask you to enable ads on our site. They are an important revenue source which supports free access of our website's content, especially during the COVID-19 crisis.

trade tracker pixel tracking