Po Na Na sold

Ex-director David Phelps bought the venue.

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.


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