Thursday, August 29, 2013
Ireland’s 7,400 Pubs Have Combined Debts Of Just Over €2 Billion, Says AIB Report
Ireland’s 7,400 pubs have combined debts of more than €2 billion and are continuing to feel the pinch from the recession, according to a report on the sector by AIB in conjunction with the Licensed Vintners Association (LVA) and the Vintner’s Federation of Ireland (VFI), the Irish Times reported. That equates to €270,000 per pub and excludes lending for other purposes that might be secured on a bar. According to the report, 53 per cent of respondents said they had a good relationship with their bank while 18 per cent said it was “poor”. Half of all pub owners said their main bank did not make them feel like a “valued customer”. This was noted by Padraig Cribben, chief executive of the VFI, who said banks have reduced or even removed credit facilities and overdrafts from a number of pubs in recent years, while also increasing the fees for lodging cash. “The pub trade needs to see a different attitude and level of engagement from the banks,” he said. “Hopefully, banks don’t want to end up running pubs – the experience of receiverships and examinerships has been unpleasant for all concerned so far – so they need to provide the right level of support.
Wed., August 28, 2013