Banks stick knife into Cains – updated

The Bank of Scotland is refusing to give any more money to Cains. This means that unless a rescue can be mounted the company will be wound up within two weeks and the brewery tap turned off.

The winding up order will be served on August 12. Shares in Cains have been suspended on the Alternative Investment Market.

The Cains website reports: “The directors believed that the Company would be able to reach agreement with its bankers regarding appropriate levels of funding, but noted that there was a material uncertainty as the Group’s ability to continue as a going concern.

“The Company’s bankers have now informed Cains that they are not prepared to support the proposals that have been put to it by the Company. Accordingly, the Board of Cains requested the suspension . A further announcement will be made as appropriate.”

This is a disaster for the 1,000+workforce, the city of Liverpool and Mersey/Lancashire beer drinkers. Let’s hope some sort of rescue can be mounted.

UPDATE: The Publican has reported on the the situation here.