UK Pubs For Sale - Freehold Pubs For Sale: Ipswich Brewery Tap pub issues own bonds to raise money

Ipswich Brewery Tap pub issues own bonds to raise money

A pub in Ipswich is to issue its own bonds after failing to get bank loans, reports BBC Suffolk.

The Brewery Tap, on the waterfront, will sell the £500 bonds to customers, who will get a 10% discount on food and drink in return.

Mike Keen, landlord, said: "We would consider putting the pub on the market if we can't raise this money."

Peter Herd, an independent financial adviser, said any investors would have to consider the possibility they could lose their money.

Cable thieves
The landlord said he hoped to raise £20,000 and claimed he would start repaying bond holders their £500 from June 2012.

The pub said the bonds were effectively loans made to them by customers, who would get a financial return in the form of the 10% discount rather than as interest.

Mr Keen said the pub had broken even in October, but they had to improve cash flow.

He said they had lost money last year when thieves stole cabling from the derelict former Tolly Cobbold Brewery nextdoor, which meant the pub had to use an electricity generator for two months.

The landlord who took over the pub two years ago, said: "You hear the government banging on about how they're pressurising the banks to loan to small businesses to kick-start the economy, and it's just not working.

"Customers have said 'if you want a loan or anything let's do it', so now we've structured it into a proper deal.

via pubs-for-sale.biz

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