Ross David Connock, Mark James Tobias Banfield and Tom Crookham of PwC were appointed as joint administrators of Oakman Inns & Restaurants Limited and Oakman Dev Limited yesterday (21 July).
As a result, six sites including The Grand Junction Arms in Tring, The Journeyman in Gerrards Cross and The George in Ludlow have ceased trading with immediate effect, causing 159 redundancies.
A further 14 sites including one freehold and 13 leasehold pubs were sold to Hampshire-founded pub operator Upham Inns.
“We are pleased to have entered into a contract for the sale of the majority of Oakman Inns & Restaurants Ltd to Upham Group Limited,” says Connock.
“This encompasses the sale of one freehold property and the transfer of 13 leasehold sites, allowing the continued operation of these pubs enabling them to continue to serve their communities.
“Most importantly, this sale sees the transfer of 531 staff members.
“It’s regrettable that six trading sites were not included in the sale, resulting in 159 redundancies. Our team of employee specialists are providing support to those affected during this challenging time.”
PwC says Oakman had been ‘affected by challenging trading conditions’, predominantly attributed to the long-term impact of the Covid-19 pandemic, which necessitated additional borrowing to stabilise the business.
Post-pandemic, the business continued to face sector-wide macroeconomic challenges including elevated interest rates, cost inflation across key inputs such as food and energy, and a temporary decline in consumer confidence affecting discretionary spending, which ‘constrained profitability and growth’.
“The hospitality sector continues to face significant and persistent challenges, including a reduction in customer numbers, which has been driven by changing consumer habits and broader economic pressures,” adds Connock.
“In addition, operators are contending with rising operating costs, such as increased energy prices, higher food and beverage costs, and wage inflation.”
Oakman has made a series of divestments in the last year.
Back in May the group sold 10 freehold pubs Brunning & Price, a division of The Restaurant Group (TRG).
It also sold three pubs to Hertfordshire-based operator McMullen’s as part of a strategic review process of the business.
In April this year, Oakman founder and chief executive Peter Borg-Neal announced he was stepping away from the business due to illness.
Upham’s acquisition from Oakman doubles its estate to 28 sites in total and extends its coverage beyond the South of England to also cover the Midlands and Southeast.
“We’ve long admired the Oakman Inns estate and the quality of their team and offer,” says Kevin Todd, executive chairman of Upham Inns.
“We’re excited to welcome the new team into our family and work together to build a standout premium pub group.”