Historic Devon Pub Closes After Management Company Enters Liquidation
A popular pub in Devon has suddenly shut its doors for good after the management company operating it was placed into liquidation, despite the venue undergoing a substantial £161,000 renovation just a few years ago.
The Rise and Fall of The Seven Stars
The Seven Stars, located in the town of Kingsbridge, Devon, had reopened in July 2021 following a significant transformation by Punch Pubs & Co, which owns the building. The refurbishment aimed to restore the characterful establishment, but now liquidators from Robson Scott Associates have been appointed for Seven Star Holdings Ltd, the management company responsible for running the venue.
A report prepared for the company's creditors pinpointed several key factors behind the business's collapse. These include rising staff costs, increased energy bills, and declining customer numbers, all exacerbated by the ongoing cost of living crisis.
Broader Industry Struggles
The closure of The Seven Stars is not an isolated incident. It reflects wider challenges facing the UK's pub and hospitality sector. Since Labour came to power in July 2024, Chancellor Rachel Reeves has implemented policies such as minimum wage increases and raised employer National Insurance contributions. Concurrently, energy prices have remained stubbornly high for both households and businesses, squeezing margins further.
Seven Star Holdings Ltd was shut down via a Creditors' Voluntary Liquidation (CVL) process, which is still ongoing. A CVL occurs when a company's directors or shareholders decide to close the business because they are unable to pay its debts.
Ownership and Operational Structure
It is important to note that the assets of Seven Star Holdings Ltd are owned by Punch Pubs & Co, which operates a portfolio of leased and tenanted pubs across the UK. While Punch Pubs & Co owns the properties, individual landlords retain full control over their operations, including:
- Recruitment and staff management
- Customer relations
- Day-to-day business decisions
Reports indicate that The Seven Stars pub has changed its limited company designation, though the management, personnel, and operational methods have remained unchanged.
Wider Sector Closures and Government Response
This liquidation coincides with other significant closures in the industry. For instance, Revolution bars proprietor, The Revel Collective, recently shuttered 21 establishments, resulting in 591 redundancies after appointing administrators. FTI Consulting, the administrators for the pub and bar operator, cited battling against escalating expenses and diminished consumer expenditure, particularly among younger customers.
The premises closed immediately include:
- 14 Revolution bars
- 6 Revolucion de Cuba bars
- 1 Peach Pub
However, FTI confirmed two agreements that will safeguard the future of 41 locations and 1,582 positions.
These closures occurred on the same day the Chancellor was scheduled to announce a £300 million assistance package for pubs. This followed warnings that budget tax alterations could trigger widespread closures, redundancies, and price increases across the sector.
Pubs are anticipated to receive approximately £100 million annually until 2029 through this supplementary financial support. Notably, other hospitality enterprises, such as restaurants, cafés, and hotels, are expected to be excluded from this package, despite similarly cautioning over spiralling costs.
The struggle of The Seven Stars, from its hopeful reopening post-renovation to its eventual closure, underscores the precarious state of many traditional pubs in today's challenging economic climate.
