Virus scuppers Sandpiper pub purchase

Tuesday 31 March 2020

Sandpiper has warned investors over its business interests after it was forced to pull out of a major deal to buy a pub chain due to the current health crisis.

The Channel Islands' largest retailer was buying the assets of the Guernsey Pub Company, which includes Randalls brewery and its pubs and eateries.

The deal was due to be approved tomorrow (1 April), but Sandpiper's Board of Directors announced today that the sale would instead be terminated, as it had been "unable to fulfil the conditions" of the agreement.

Pictured: The Board of Directors has had to pull out of the purchase of the Guernsey Pub Company as the corona virus pandemic affects business interests across the Channel Islands.

Sandpiper only had to meet the criteria to get the placing shares on the Official List of the International Stock Exchange to buy the company. However, the board said the effects of the covid-19 outbreak across the Channel Islands had meant Sandpiper hadn't been able to do so.

"The Board of Directors of the Company regrets to announce that due to the effects of covid-19 to date and the uncertainty surrounding its future effects, it has been unable to fulfil the conditions of the placing agreement required to achieve admission of the placing shares to the Official List of The International Stock Exchange, which was the remaining condition to the sale and purchase agreement required to complete the acquisition of The Guernsey Pub Company Limited," a spokesperson said.

"Therefore, the Company has served notice to the vendors to terminate the sale and purchase agreement with effect from tomorrow, 1 April 2020."

Pictured: The deal would have seen SandpiperCI acquire the Rockmount in Guernsey, among other locations.

It means the purchase of well-known sites in Guernsey such as the Rockmount, the Imperial and the Slaughterhouse as well as brands including Blue Bottle Gin, has been scrapped.

But Sandpiper also warned there may be a wider impact on its interests outside of hospitality too. 

They said the corona virus outbreak has impacted across its entire portfolio, which includes clothes shops and grocery stores in both Jersey and Guernsey, and that it might have a wider impact on investors' interests as the situation continues to develop.

All pubs and nightclubs across Guernsey were forced to close on Friday 13 March, as part of efforts to curb the spread of corona virus. Those which served food were initially allowed to stay open at mealtimes but have since been forced to shut for an unspecified length of time.

The Bailiwick of Guernsey went into lockdown on Wednesday 25 March, putting further pressure on those businesses which had stayed open to offer a takeaway service.

Jersey implemented the same measures a few days later, with pubs, bars and nightclubs closing on 22 March and the island going into lockdown on Monday.

A SandpiperCI spokesperson assured the Board is "closely monitoring the implications of covid-19" on the business of the Company and its group, amid what they described a "fast-moving" situation.

"The measures implemented by both the States of Guernsey and the Government of Jersey require the closure of all non-essential shops and place material restrictions on physical retail businesses," they added.

"As a result, all of our clothing and home shops in Guernsey and Jersey are temporarily closed while the food stores remain open.

"We are continually evaluating and taking action to mitigate the effects of the COVID-19 lockdowns, as well as running various scenarios to assess the potential financial impact.

"The Company will make further announcements if any material factors emerge that might affect investors’ interests."