Brocade Limited - Case Update

The joint administrators of a pub and bar operator have received significant interest from prospective buyers, leading to the continued trading of the sites to see if a deal can be achieved.

Brocade Limited was incorporated on 1 August 2019. It operates three pubs and bars across South and East London, including Elephant and Castle, and employs approximately 54 people. The company is the only subsidiary of Babel Silk Limited, which is wholly-owned by Anthony Thomas. TC Loans Limited and TC Loans (CBILS) Limited (collectively “Thincats”) provided a secured loan to the company.

In May 2024, HMRC presented a winding up petition against the company for unpaid tax liabilities. Thincats then took steps to preserve its position, and Stephen Absolom and William Wright were appointed joint administrators on 12 July.

Following the announcement of their appointment, the joint administrators received significant interest from various potential purchasers. As a result, they have continued to trade the business and have appointed Licenced Solutions, an experienced pub operator within the hospitality industry, to support the management of the pubs whilst a sale is explored. All premises licenses have been transferred from the relevant individuals at the company to Licensed Solutions.

The joint administrators are continuing to monitor the trading position. However, due to the high level of parties interested in buying the pubs, they remain comfortable that continued trading is the right strategy to maximise value.

The joint administrators’ proposals can be found HERE. They have been assisted by HCR Legal and Addleshaw Goddard.