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Brewer and pub company Mitchell's of Lancaster falls into administration

14 December 2018 by
Brewer and pub company Mitchell's of Lancaster falls into administration

Mitchell's of Lancaster brewery and pub company has fallen into administration with business rate increases and Brexit uncertainty cited as having caused a difficult trading environment.

Steven Muncaster and Sarah Bell of Duff & Phelps Ltd were appointed joint administrators of the brewery's 13 pubs and one hotel on Wednesday.

Muncaster, managing director of Duff & Phelps, said: "The UK pub sector has suffered sustained adversity over the last decade, with the latest ONS statistics showing that nearly a quarter of pubs have closed since 2008, with the majority of these closures being small pubs.

"This troubled landscape coupled with rising business rates, increased minimum wage, and the continued uncertainty surrounding Brexit has created difficult conditions for pubs across the UK. As such, the owners were left with no alternative but to put the company into administration. We are seeking a buyer for the group and we encourage any interested parties to come forward as soon as possible."

There are 13 pubs and a hotel under the group, which employ around 120 people and continue to trade.

Upon appointment, administrators made 14 members of head office staff redundant, but there were no redundancies among the 49 people employed to work in the brewery.

Muncaster added: "While York Brewery is a popular destination for both locals and tourists, the company has unfortunately continued to face cashflow pressures as a result of difficult conditions which are affecting the leisure industry and pubs across the country. We are seeking a buyer and we encourage any interested parties to come forward as soon as possible."

Mitchell's was founded in 1871 by William Mitchell and had remained in the family for the past 140 years.

Calls for support as figures reveal 23% fall in pub numbers since 2008>>

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