Buyer sought for Bierkeller bars as parent firm falls into administration
Leisure operator Burning Night, the company behind the popular Bierkeller chain of bars, has fallen into administration.
The Leeds-based company has been taken over by joint administrators Andrew Mackenzie and Julian Pitts, from the Leeds office of corporate recovery firm Begbies Traynor.
Before administration, Burning Night closed its venue at the Millennium Stadium in Cardiff, as it was found to be financially unviable and negatively impacting the group’s costs.
But according to Begbies Traynor, the firm’s five other Bierkeller Entertainment Complexes in Leeds, Liverpool, Manchester, Nottingham and Birmingham all experienced growth in the last financial year.
The remaining Bierkellers will continue trading as normal, with further growth forecast over the next 12 months.
Bierkellers employ more than 500 people nationwide and generated an annual revenue of more than £25m in 2017/18, accounting for a large part of Burning Night Group’s operational business.
Andrew Mackenzie, joint administrator, said: “It is important to stress that the companies which own the Bierkeller leases are not in administration and we are working closely with management and lenders to continue to trade these prime assets to their full.
“We are currently seeking a buyer for the venues in order to bring about the best outcome for the company’s creditors, staff and customers.”
Following their appointment on September 28, Andrew Mackenzie and Julian Pitts have today (October 9) also been appointed as joint administrators of Cornertrack Limited.
Cornertrack is a wholly owned subsidiary of Burning Night that supplied beer to the venues.