Enterprise Inns to sell off up to 500 pubs in 2011

Pub giant Enterprise Inns has announced plans to sell off a further 400 to 500 pubs throughout 2011.

Solihull-based Enterprise is hoping to net around £125 million from the sale of the pubs. it plans to use these to alleviate the losses affecting its operating profits, which were brought on by extreme weather conditions at the end of last year.

The pub company made public its plans through an interim statement released last week on the Stock Exchange, which commented on the group's profits and losses for the last 16 weeks of trading. The group confirmed that the snow and icy weather – which caused people to stay at home rather than venturing out to pubs – affected the operating profits by around £2 million.

An Enterprise Inns spokesperson said, "We can take further encouragement from performance during the three weeks following the quarter end where, against easier comparables due to last year's poor weather, some of this December shortfall has already been recovered."

Over the last 16 weeks, the pub group has sold 105 of its pubs, making net proceeds totalling £32 million.

Alongside the 400 to 500 pubs it plans to sell off this year, the company also agreed a £42 million agreement to leaseback some of its pubs and eateries earlier this month.

The spokesperson continued, "Trading conditions are likely to be challenging throughout the year as licensees and consumers alike face the prospect of economic uncertainty, increases in duty and VAT, rising costs and higher unemployment.

"However, there is clear evidence that a significant majority of our estate is successfully facing up to these challenges and trading well," added the spokesperson.