Laurel Pubs bought by Tchenguiz-backed companies

LONDON (Reuters) - The owner of the Slug and Lettuce and Yates's pubs went into administration briefly on Thursday but was quickly bought up in a pre-arranged deal by two companies backed by property magnate Robert Tchenguiz.

Tchenguiz has invested 50 million to 60 million pounds refinancing the debts of the Laurel Pub Company, sources close to the matter told Reuters.

Banks have provided the rest of the money, although a total was not disclosed, in a deal which has seen most of the outlets of the Slug & Lettuce chain, ha ha bar & grill chain and Yates's bought by two newly formed Tchenguiz-backed companies.

Together the chains employ around 8,000 staff.

"Contrary to some rumours the pension funds, suppliers and banks (for the Laurel Pub Group) will all be paid in full," a spokesman for Robert Tchenguiz told Reuters by phone.

However, 90 pubs, mainly run under the Yates's and Litten Tree brands, were not purchased by Tchenguiz's companies and remain up for sale in the hands of administrators.

"Things couldn't carry on as they were but this secures the future of the majority of the businesses and safeguards jobs," said Tchenguiz's spokesman.

Newly formed Bay Restaurant Group has bought 132 restaurants of the Slug & Lettuce, ha ha chains and future pipeline sites. It is combining its portfolio with the La Tasca restaurant group, which Tchenguiz bought last year.

Newly created Town and City Pubs bought 161 pubs comprising mainly of Yates's and unbranded venues.