THE owner of some of Edinburgh’s best-known bars have predicted two further years of gloom with conditions “even more challenging” than those following the credit crunch, recent accounts show.
Montpeliers, which owns trendy Indigo Yard and Tigerlily, highlighted the risk to its business if consumers continue to keep money in their wallets, as well as the rise in competition in the capital.
Nevertheless, the company said it had reduced its debt pile in the 13 weeks to 31 July, from £8.2 million to £7.7m.
The group said it was successful in refinancing its debt with the Bank of Scotland in January 2013, adding that it “continued to benefit from low rates of interest” on its borrowings..
The company – which is owned by two couples, Robert and Wendy Elliott and David and Ruth Whither – recently filed a quarterly accounts update to Companies House.
The directors’ report said one of the main risks facing the company was “the continuing increase in competition from existing and new operators within Edinburgh”.
Montpeliers’ directors noted that “consumers will continue to protect their discretionary spend very carefully” and that “it is our view that the coming two years will be even more challenging than the four years that have elapsed since the credit crunch triggered global recession”.