Partner Article

Ups and downs for Newcastle bar scene

The firm behind some of Newcastle’s most popular bars has reported a sales plunge as drinkers stay at home, while another bar has seen an impressive increase in sales.

Premium Bars and Restaurants, formerly known as Ultimate Leisure, recorded an 8.5% fall in trade at the end of last year. The firm, which operates 48 outlets nationwide including the Living Room, The Lodge and Blu Bambu in Newcastle, said it had suffered the drop in the six months to December 28.

It is now holding talks with banks to secure its short and long term cash requirements.

Premium employs hundreds of people in the North East, although it moved its base from Newcastle to Manchester last April.

Now trading in its shares has been suspended under City rules as it may be unable to provide end of year results to June 30 if it fails to secure adequate funding.

In a statement, the firm said: “The board anticipate that trading conditions will remain tough during 2009, but are confident that the cost savings initiative that have been put in place by the new management team will help mitigate this risk.The company continues to progress discussions with its banks in order to renew its facilities and procure the necessary additional funding to meet the short and long term cash requirements.”

While Premium Bars is experiencing the negative effects of the recession, another Newcastle-based leisure firm is celebrating a successful winter. Aquaclear Leisure, owners of Popolo bar on Pigrim Street, are proclaiming the success of their cocktail menu, having sold more than 90,000 throughout December and January.

Aquaclear have attributed the rise in sales to ‘broadening tastes’. Jon Dyer, General Manager of Popolo, said: “Cocktails are a speciality at Popolo and have always sold reasonably well. But they’ve definitely become more popular over the last year or so. “People are keen to treat themselves and try something different.”

This was posted in Bdaily's Members' News section by Ruth Mitchell .