Partner Article

Parts of Principle Leisure go into administration

A leisure firm - which employs 300 people in the region - has confirmed several companies within its stable have gone into administration.

The Principal Leisure Group, based in Washington, operates the Popolo branded bars in Newcastle, Sheffield and Nottingham, along with a number of additional outlets.

Begbies Traynor in Newcastle is handling the administration of the group’s subsidiaries, Principle North East, Principle Yorkshire and Principle Midland.

The firm reportedly encountered cash flow difficulties due to the opening and refurbishment of several new outlets and the general downturn in the licensed sector, resulting in tax arrears being accrued.

The company said its management structure was weakened by the illness and passing of Joseph Peel, director of Principle Leisure.

Joint Administrator Andrew Haslam, said: “The outlets are now being operated under licence whilst a purchaser is sought.

“The process undertaken will, at least in the short term, protect the contracts of over 300 employees and offer the group the best opportunity to identify a purchaser.”

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