100 pub jobs lost as firm folds

Published on Friday 12 September 2008 21:54

THE effects of the smoking ban and a downturn in trade caused by the credit crunch were yesterday blamed for the voluntary liquidation of CMC Management, which will result in the closure of 15 pubs across Scotland.

Crawford Mitchell and Gary Colton, CMC Management's directors, said the a significant downturn in trade had made it "impossible" for the pubs to continue trading.

About 100 jobs will be lost following liquidation, which was granted by Falkirk Sheriff Court on Wednesday.

Pubs affected by the voluntary liquidation include the Gray Horse, in Edinburgh, the Stirling Arms, in Dunblane, and the Victoria Hotel, in Nairn.

Maureen Leslie, of MLM Insolvency, said: "We were appointed by the court after CMC Management directors applied for voluntary liquidation.

"It is our understanding that a general downturn in business after the smoking ban was introduced and the significant reduction in trade due to the credit crunch are the two main factors behind the business failing.

"In this case, the directors have no further comment to make." Leslie said the directors would carry on with CMC Inns, their other business, which includes about five other pubs on different terms from the breweries, with longer leases.

She added that the units within CMC Inns were better performing pubs.

Leslie said: "We are seeing more and more businesses going into liquidation as a result of the credit crunch.

"Businesses are increasingly finding it much more challenging to make ends meet as people spend less and the cost of running a business increases."