Developers collapse but venues not under threat
THE owners of two Southport bars ended their contract with a development firm months before it fell into administration.
The Burning Night Group (BNG) played a key role in transforming the former Sandgrounder pub on Lord Street into two new venues, the ground floor Potting Shed and the sports-themed Firepit on the first floor.
BNG oversaw the development of the bars, which are run by Ormsborough Ltd.
BNG went into administration last month and its chain of Bierkeller venues was listed for sale this week, raising questions over the future of the Southport venues.
Fears were raised that the bars could close jsoon after a £2.6m investment.
But the Visiter can now reveal that the investment firm which backs Ormsborough, Downing LLP, had earlier cut ties with BNG because of concerns over its finances and running over budget during developments after the Southport venues.
As a result, both the Firepit and the Potting Shed are unafffected by BNG’s collapse.
Nick Carter, investment manager at Downing, said: “The Southport Potting Shed and Firepit is owned by Ormsborough Ltd, a company which owns and operates seven Potting Sheds and two Firepits across northern England.
“Ormsborough is backed by funds managed by Downing.
“Burning Night Group previously oversaw the development of Ormsborough’s bars and supported their trade and operations.
“However, as a result of cost overruns at the latest sites and concerns over BNG’s financial position, their contract was terminated.
“A Downing-led team, including new management and board members, has been installed in their place.”
He added: “None of the funds managed by Downing were invested in BNG and none of Ormsborough’s employees will be impacted by the administration of BNG. Ormsborough’s established and operational pub and bar sites continue to generate impressive levels of sales and profits, and none are up for sale.”