Takeover Fuels Fears for Future of Fulham Pubs

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Sale of brewer Greene King to Hong Kong conglomerate could lead to closures

There are fears for the future of a number of pubs in Fulham and surrounding area after the sale of pub giant and brewer Greene King to Hong Kong conglomerate CKA.

Suffolk-based Greene King’s runs a number of pubs in Fulham - riverside bar The Crabtree, The Durrell Arms in Fulham Road and The Butcher's Hook at Stamford Bridge, which has just reopened after been given a 'six figure' refurbishment.

Elsewhere in the borough are the Havelock Tavern and The Rutland Arms in Hammersmith and The Queen Adelaide in Shepherd's Bush, as well as numerous pubs in Chelsea and Earls Court.

Overall its estate includes roughly 2,700 pubs, restaurants and hotels in total across the UK. The deal is worth £2.9 billion.

Neil Wilson, analyst at Markets.com, told BBC News while the deal was good news for shareholders, it was likely to be bad news for Greene King's customers. "I think we can comfortably expect more pub closures. It's a whopping price that implies CKA sees significant value in the property portfolio," he said.

Market analysts are saying that the weakness of sterling has provided an opportunity for CKA to acquire a significant asset base in the UK which they can choose to continue to operate as pubs or develop at the appropriate time.

CKA said it is a long-term and strategic investor in stable, profitable and cash flow generating businesses that benefit from real estate backing. "CKA believes that the United Kingdom pub and brewing sector shares these characteristics and that pubs will continue to be an important part of British culture and the eating and drinking out market."

Greene King chief executive Nick Mackenzie said CKA shared "many of Greene King's business philosophies".

"They understand the strengths of our business and we welcome their commitment to working with the existing management team, evolving the strategy and investing in the business to ensure its continued long-term growth," he added.

Butcher's Hook at Stamford Bridge reopened on Saturday 10 August after undergoing an extensive makeover which Greene King described as a 'six-figure' refurbishment.

The pub, at 477 Fulham Road, is opposite the main entrance to Chelsea Football Stadium and shares a long history with the club. The first meeting of Chelsea Football & Athletic Club was held in the pub, then known as the Rising Sun, on 10 March 1905.

Its new look emphasises its sporting connections, with matches shown live on screens throughout the bar.

August 7, 2019