Wetherspoons could buy up small struggling pubs across the UK as a result of the pandemic

Struggling pubs which have been hit hard by the pandemic could be bought up at reduced prices by large pub chains, according to separate plans published by JD Wetherspoon and a new US-backed venture.

Bars in London and inner cities are likely to be the primary targets for buyouts, as they have been worst impacted by the loss of tourism and trade from workers.

In a statement to investors, Wetherspoons described plans to raise almost £100 million through placing new shares, with some of the money earmarked to “facilitate the acquisition of new properties”.

It said the properties “are likely to be available at favourable prices, as a result of the pandemic” and that “it may be possible to achieve a higher-than-average return on capital on properties acquired in the next few years”.

Pubs remain closed

In another recent statement, the pub group said it expected all 872 of its premises to remain closed until April due to the pandemic.

JD Wetherspoon said it has not made any sales so far this year, with all of its pubs remaining closed since at least 31 December.

The pub giant said 99 per cent of its staff are currently on furlough. It has reduced the number of total staff in the business by 6,000 since the pandemic began, to 37,674 employees.

Redcat Pub Company

If it goes ahead with its buyout plan, Wetherspoons will compete with a new venture, Redcat Pub Company, run by former Greene King boss, Rooney Anand, and backed by an unnamed US private equity firm.

The new pub group is reportedly looking to spend £200 million on pubs and bars across the UK.

These large investment moves come as the country’s pub industry is in severe difficulty due to the impact of lockdowns and the pandemic generally on trade. Pubs remain closed throughout the UK, and are unlikely to open again until April.