Honeycombe Leisure’s deal with Punch Taverns should shield the North-West-based pubs operator from falling into the trap that has savaged many of its managed-house rivals; taking on too many leases they cannot afford.
Punch is buying 12 freeholds for £11.72m from Honeycomb which will manage the sites for the next 20 years. Honeycombe will pay its new landlord a percentage of revenue and profit in lieu of rent.
It means Punch will take the financial risk, leaving Honeycombe to focus on attracting customers.
References: The Independent 18/02/03 page 21 (Investment)
