Wetherspoon’s “Saviour Of The Poor” Image Slips Somewhat With News Of Loan Difficulties

Last week J D Wetherspoon announced it was making it their mission to offer 99p pints to the poor and destitute seeking beery reprieve within their generic walls, quite the drop considering the average cost of pint of beer is now £2.75. Britain’s biggest highstreet pub chain, with 719 pubs across the UK, is just being nice. 

Chief executive of Wetherspoon’s, John Hutson, said: “People enjoy going to the pub. However, we appreciate that the economic downturn means that they now have to be more careful with their money. Unlike most sales that start in January, our offers will not be ending within days, but will run indefinitely.” That’s what the price cut is for, general niceness! Not for the loan they have accumulated of nearly £100 million that is due in September, not at all!

Wetherspoon’s has called a halt to almost all corporate spending over fears that it will not be able to repay the loan. The pubs lead lender is the Royal Bank of Scotland and in the uncertainty surrounding the banks and refinancing of loans looming, the board has decided to cut spending. That includes expansion (thus sparing some of the high streets in the UK from their carpeted, fake-hardwood “atmosphere”), and also dividend payments. The FT says that its going to find the refinancing tough, so “investors might want to start thinking about taking profits now”. 

They look even more unstable when you find out their chief executive has, David Ross-style, put up 3.6 million personal shares as collateral against loans (he did pay off the loan in the end with his shares, so it’s kind of alright again). But despite these blips one thing is clear: there are some krazy deals. 

The chain will, starting Monday, cut the prices of a pint of Greene King IPA and a bottle of San Miguel premium lager to 99p. The price reductions also cover a shot of Sailor Jerry rum (so delicious!) with a mixer for £1.29, a 75cl bottle of Jacques cider for £3.99, and bottle of Blossom Hill rosé wine will be £4.99. As well as five meals that will cost £2.99. Mental. Price wars, no matter how much Punch try to resist, are surely about to follow, and will definitely help us all on our quests of intoxication without feeling it in our pockets.

Posted by Trista Orchard in Hot Money | January 22, 2009 6:05PM |