Kenny Waugh joins King's board to launch new city pubs group

Scottish pubs and hotels tycoon Kenny Waugh is joining the board of Stefan King's G1 group after selling four of his Edinburgh outlets to the Glasgow nightclubs owner in a deal worth an estimated £30 million.

The pair have formed EH1 to operate within the G1 group that takes over Biddy Mulligans and Grassmarket Hotel, Bank Hotel, the Three Sisters and the Murrayfield Hotel. Waugh will chair EH1.

King, managing director of G1, said: "I've been keen to work with Kenny for some time and I am pleased to join him in strengthening Edinburgh's leisure market.

"No-one knows the city's bars, hotels and clubs better than him and to have his in-depth knowledge and experience at board level will be of enormous benefit."

There are plans to invest 1 million in EH1 next year.

Waugh's loss-making Festival Group, which plunged into administration owing Clydesdale Bank more than 40m, has also sold the Hudson Hotel in the west end along with its nightclub, Bacaro, to Saltire Taverns.

The sales were through a "pre-pack" deal where a buyer is lined up ahead of insolvency. They follow the sale last week of the Scotbet business which was also part of the Festival Group.

The administration was a consequence of a downturn in trade. Blair Nimmo, joint administrator at KPMG in Scotland, said 175 jobs had been saved.