Debts of £23m revealed at crisis-hit pubs firm

A firm that ran dozens of pubs and social clubs across the West Midlands and Staffordshire racked up £23.4 million debts before going into administration.

Zolfo Cooper was appointed joint administrators of Calco Pubs Limited in January due to "difficult market conditions".

The company owns and operates a chain of 79 managed and tenanted public houses across the Midlands and north of England. Administrators have now calculated the full extent of debts at the firm, which is revealed in a statement of affairs on Companies House.

The company ran venues including the Bulls Head in Birmingham Street, Oldbury, the Bridge Cross Working Men's Club in Burntwood, and the former Yew Tree Sports and Social Club on the Sandwell and Walsall border.

Records show AIB Group (UK) plc, a subsidiary of Allied Irish Bank (GB), advanced the firm £27.14m, but its venues and land across the region only come to £15m – so a shortfall of £12.14m remains.

The value of the pub company's property has dipped nearly £100,000 from its last book value. The bank declined to comment on its lending. Meanwhile, trade creditors and some staff have been left out of pocket to the tune of a combined £11.79m.

Suppliers, including breweries and councils who collected rates and rent for its premises, were left owed a total of £779,441. Bosses also owe tenants bonds worth £87,866 and managers bonds of £38,162. Redundancy money and pay in lieu of notice is still owed and amounts to £134,335.

Zolfo Cooper spokesman Edward Jones said: "The joint administrators are continuing to work with their advisers to assess the options available."