Bank puts pub group Orchid up for sale

British pub company, Orchid, is reportedly now for sale with a price tag of around £300 million.

According to the Sunday Times Orchid, which owns more 290 pubs and employs around 6,500 staff, is being sold by Deutsche Bank after it took control of the group last year in a debt-for-equity swap.

The pub company initially launched in 2006 when private equity firm GI Partners set it up to buy pubs which were being sold by Punch Taverns.

But two years later, in 2008, after suffering financial problems Orchid went through a pre-pack administration, which is where a restructure plan is agreed in advance of going into administration.

Deutsche Bank has been investing in the business since taking control last year and Orchid claims to have spent £50 million renovating its pub estate.

Headed by chief executive Rufus Hall, Orchid runs pubs as well as restaurant chain The Oriental Group, Dragon pubs serving Thai food, Bar Room Bar pizza and cocktail venues and carvery pubs.

It is understood Orchid and Deutsche Bank are working with corporate finance firm Sapient on the sale.

The Sunday Times reported that it expects a number of other pub companies to be interested in buying Orchid. The paper added that the company, which generated sales of £180m in 2011, is expected to be sold for between £250m and £300m.