Liquidators have been appointed to the company managing the watering hole.
Liquidators have been appointed to a company managing the Seven Stars pub in Kingsbridge, Devon (Image: Getty)
Liquidators have been appointed to a pub management company despite a £161,000 revamp by the owner of the watering hole’s building. The Seven Stars in the town of Kingsbridge, Devon, reopened in July 2021 after the “characterful” pub was transformed by Punch Pubs & Co.
But liquidators from insolvency services firm Robson Scott Associates have been appointed for Seven Star Holdings Ltd, the management company which runs the venue. A report prepared for the company’s creditors identified increased staff costs, higher energy bills and a fall in customers amid the cost of living crisis as the main reasons for the failure of the business.
Since Labour swept to power in July 2024, Chancellor Rachel Reeves has announced minimum wage rises and hiked employer National Insurance contributions. Energy prices have also remained stubbornly high for households and businesses.
According to Robson Scott Associates, Seven Star Holdings Ltd was closed via a Creditors’ Voluntary Liquidation process, which is still ongoing.
A CVL sees a company’s shareholders or directors decide to close it by placing it into liquidation because they are unable to pay their debts.
Seven Star Holdings Ltd’s assets are owned by Punch Pubs & Co, which operates a mix of leased and tenanted pubs across the UK.
While Punch Pubs & Co. own the buildings in its chain of venues, publicans have full control over their own businesses, being responsible for employment, management of staff and customer service, among other things.
The Express understands the Seven Stars pub has changed its limited company name, but the management, staff and how it operates remain the same.
The Seven Stars remains open and is being run by the same team, the Express understands (Image: Google Street View)
News of liquidators being appointed to Seven Star Holdings Ltd comes as Revolution bars owner, The Revel Collective, closed 21 venues with the loss of 591 jobs after appointing administrators.
FTI Consulting have been brought in as administrators for the pub and bar operator, which said it has struggled against rising costs and weaker consumer spending, particularly among its younger clientele.
The venues closing with immediate effect include 14 Revolution bars, six Revolucion de Cuba bars and one Peach Pub. However, FTI confirmed a pair of deals which will secure the future of 41 sites and 1,582 jobs.
Those closures come on the day the Chancellor was set to unveil a £300million support package for pubs after they warned budget tax changes could lead to mass closures, job cuts and price rises.
Pubs are expected to receive around £100 million a year until 2029 through additional financial suppor,t but the Chancellor has avoided more fundamental changes to business rates.
Other hospitality businesses, such as restaurants, cafes and hotels, are, however, expected to miss out despite also warning over soaring bills.
The Treasury’s planned intervention comes after an intensifying backlash from industry bosses and MPs over impending tax increases.
This has also seen dozens of Labour MPs, including the Chancellor, barred by pub landlords in response to November’s autumn budget.
In the budget, the Treasury announced changes to business rates which introduced a lower multiplier used to calculate the commercial property tax.
However, this was more than offset by the removal of a Covid-era 40% discount to business rates bills for hospitality, leisure and retail businesses, as well as new property valuations.
The Chancellor introduced transitional relief to manage increases to rates bills over the next three years after the removal of sector discounts.
However, industry bodies UKHospitality and the British Beer and Pub Association warned that pub business rates bills will still increase by an average of 15%, or £1,400, in April.
They said this will be an average rise of 76%, or £7,000, by the 2028/29 financial year.
Nevertheless, the support measures are likely to draw ire from other parts of the industry, such as hotels, where business rates bills are set to jump by an average of 115% a year, or £111,300, over the next three years.
