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Iconic pub suddenly goes into liquidation despite 161,000 renovation

The popular pub reopened in July 2021 after the building was transformed following a 161,000 revamp by the owner of the building, but now it's gone into liquidation

[A view of empty pint glasses on a bar with customers smiling in the background]

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The pub industry is struggling across the country (Image: Getty)

Note: A previous version of this article incorrectly reported that 'Iconic pub suddenly shuts its doors for good despite 161,000 renovation'. In fact, the pub's management company went into liquidation, although the management, personnel and operational methods remained unchanged, as stated within the text of the article. We are happy to clarify this and the article has been amended accordingly.

A pub management company has been plunged into liquidation despite a 161,000 renovation by the owner of the boozer's premises.

The Seven Stars in the town of Kingsbridge, Devon, reopened in July 2021 after the "characterful" pub was transformed by Punch Pubs & Co. However, liquidators from insolvency services firm Robson Scott Associates have been appointed for Seven Star Holdings Ltd, the management company which operates the venue.

A report compiled for the company's creditors highlighted rising staff costs, increased energy bills and declining customer numbers amid the cost of living crisis as the primary reasons for the business's collapse.

[A view of the pub]

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The popular pub struggled after the Covid 19 lockdown(Image: Google Street View)

Since Labour swept to power in July 2024, Chancellor Rachel Reeves has announced minimum wage increases and raised employer National Insurance contributions. Energy prices have also remained persistently high for households and businesses.

According to Robson Scott Associates, Seven Star Holdings Ltd was shut down 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. Whilst Punch Pubs & Co. owns the properties in its chain of establishments, landlords maintain complete authority over their individual enterprises, handling recruitment, staff management and customer relations, amongst other responsibilities.

The Express reports the Seven Stars pub has altered its limited company designation, though the management, personnel and operational methods remain unchanged.

Reports of liquidators being assigned to Seven Star Holdings Ltd emerge as Revolution bars proprietor, The Revel Collective, shuttered 21 establishments resulting in 591 redundancies after appointing administrators.

FTI Consulting have been enlisted as administrators for the pub and bar operator, which stated it has battled against escalating expenses and diminished consumer expenditure, particularly amongst its younger customers.

The premises closing immediately comprise 14 Revolution bars, six Revolucion de Cuba bars and one Peach Pub. Nevertheless, FTI confirmed two agreements which will safeguard the future of 41 locations and 1,582 positions.

These closures coincide with the day the Chancellor was scheduled to announce a 300million assistance package for pubs following warnings that budget tax alterations could trigger widespread closures, redundancies and price increases.

Pubs are anticipated to receive approximately 100 million annually until 2029 through supplementary financial support. Other hospitality enterprises, including restaurants, cafs and hotels, are expected to be excluded despite similarly cautioning over spiralling costs.

A previous version of this article incorrectly reported that 'Iconic pub suddenly shuts its doors for good despite 161,000 renovation'. In fact, the pub's management company went into liquidation, although the management, personnel and operational methods remained unchanged, as stated within the text of the article. We are happy to clarify this and the article has been amended accordingly.

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