Late-night bars formerly run by
collapsed chain Po Na Na have moved out of administration following
a deal involving a former director David Phelps.
Barvest, a company led by Phelps, has bought the 28 of the chains
48 bars and nightclubs, including the Hammersmith Palais. The
company was specially formed for this, backed by private equity
firm Avanti Capital.
Po Na Na went into administration in May after running into financial
difficulties earlier in the year. 15 of the venues were sold or
closed and five sites, at Fulham, Bristol, Swansea, Portsmouth
and Leeds, still have to offload.
The remaining 28 bars and nightclubs have been sold to Barvest
in a deal which is worth up to £6 million. Apart of the
Hammersmith Palais, the deal involves also the Foundation in Newcastle
and London club Embargo.
The units are all profitable at an operating level and are described
as the best performing bars in the company's portfolio. Many were
formerly owned by Mr Phelps prior to the sale of his business
DP Leisure Group in 1999.
As well as the bars, which generated sales of £23.4 million
and contributed profits of £4.3 million in the year to March
31, Barvest has also secured the rights to the Po Na Na name.