Regent Inns, is facing big crisis with its sales going down drastically. Regent Inn is basically an operator for pubs and comedy clubs. Its entertainment bars division registered 11 per cent slump in sales since beginning of the year. Rising costs, tough competition and the ban on smoking in the pubs have adversely affected the business of its Walkabout chain.

Regent had been under severe cash and capital crunch. As part of its recovery measures it has slashed capital expenditure, and has decided to cancel dividend payments. Regent Inn is struggling to repay its huge debt of £79m. Seven of its freehold properties were sold and leased back in March. These measures yielded meagre £1.6m. The debt is four times its market capitalisation value.

According to Bob Ivell, the executive chairman  the sales of its core entertainment division has been continuously falling since Christmas and has taken a worst turn   with its like-for-like sales going down  by 10.9%. He says the performance is dismal despite good contributions from 12 Jongleurs clubs during this period.  Regent’s shares prices had witnessed crash of almost 90% last year. It has entered in to negotiations with potential bidders Sun Capital, and night club group Brooks Leisure. British Beer and Pub Association reports, Britain is witnessing closure of 4 pubs everyday.

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