LANDLORDS have been left in limbo after Sandpiper confirmed the rumours and called time on its pub estate yesterday. The announcement means 21 in Guernsey, 42 in Jersey and two in Alderney are up for sale along with the rest of the company’s hospitality arm - Jersey Brewery and drink distributor Bucktrout in Guernsey and Victor Hugo in Jersey.
Just over 250 staff will be affected in Guernsey, with 537 in total across the Channel Islands.
Landlords and tenants were told not to speak to the media yesterday, but one who did said: ‘We really don’t know what’s happening. It’s been indicated it will probably be a block sale.
‘Everybody is feeling a lot of uncertainty.
‘We don’t know if people will come in and buy and close the pubs or do them up. A couple of pubs could be shut and sold as housing.’
Management informed employees at staff meetings yesterday. Landlords and tenants found out via letters in the post.
Sandpiper chief executive Tony O’Neill said that since completing the £260m. takeover of CI Traders in August, the company had attracted unsolicited enquiries for its businesses and that it had now decided to concentrate on its retail arm.
‘While continuing to review the business, we’ve had some serious approaches.
‘As a result, we have taken the decision to divest of our hospitality businesses.
‘It is a key decision in the company structure and we have taken time to consult management and industry sector experts before deciding on this course of action.’
Mr O’Neill said Sandpiper and its advisers had identified its hospitality business as an area which would have greater potential if it was owned and operated by a company dedicated to that sector.
He said it was important to focus the company’s expertise on fewer sectors.
‘This will enable us to develop our retailing operation at a faster pace. That was a clear decision.’
The sale does not include the Wine Warehouse stores, which will remain part of Sandpiper’s retail portfolio.
Mr O’Neill said he could offer no guarantees about the future for staff but added that it was likely any new owner would come in with significant capital investment, which would improve what was on offer and ensure the long-term future of employees.
‘Obviously, we will keep our staff, customers and the media fully apprised when a suitable purchaser is found.
‘We will continue to operate these businesses and provide high levels of service to our customers until a suitable purchaser emerges.’
The sale of Sandpiper’s hospitality arm comes less than six weeks after the company announced it was selling its two hotels - La Trelade and St Pierre Park.
Mr O’Neill said developments on that front were unlikely until after Christmas.
‘It’s an ongoing process. We are still evaluating and people are still analysing the businesses.’
Article posted on 17th November, 2007 - 12.00am
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