By George Stephens • 30 April 2020 • 13:07
THE Costa del Sol now has more bars for sale than ever since the big financial crash in 2008 as bar owners are bailing out of the game and listing their businesses for sale.
This has brought about asking prices crashing with massive reductions up to 50 and 60k and more when it comes down to any negotiations for the final price, as owners just want to bail out and offload as they see no future or can’t afford to reopen after a torturous start to 2020 with the coronavirus break out and a harsh financially crippling lockdown period.
Owners who still don’t even know exactly when they could possibly open and expecting to be under severe financially crippling new regulations when they do even get the opportunity, such as rumoured 30 per cent capacity laws coming into place, as well as the thought of far less travellers and tourists for a long period are bailing out of the industry.
As the bail out commences and with so many offers on the market now, reductions in price continue to lower as bar owners just want quick sales and to be sold before another.
“I’ve tried to hang on, but there’s no point delaying it any longer, there’s no light at the end of the tunnel and landlords and banks are putting the squeeze on me now, so I have no option but to list and attempt a sale,” said bar owner Kevin Lloyd in the back streets of Fuengirola.
A sports bar owner told the Euro Weekly News “I’m not even going to have sport to fall back on even if I can reopen, I’ve listed with agents now and I hope they can just find me a buyer and quick, enough’s enough, I’m biting the bullet and leaving here as soon as I can.”
Meanwhile Freddy Robinson in San Pedro said “Unfortunately with so many listings now as so many are bailing out it’s reduction after reduction and if you do get a bite of a sale, then the price gets chipped at even further, but that’s the state of play, I think it could be the end of the British owned bar for many years to come.”
Although Gary Adamson, Managing Director from Bars Abroad disagreed it’s the end of the British bar in Spain as he told the Euro Weekly News:
“For sure it’s a buyer’s market right now and there are some huge reductions in asking prices, but the market will eventually come back, yes I have great sympathy for those listing and yes it’s unfortunately very high numbers at present due to bar owners’ personal circumstances which I’m not prepared to discuss, but I am assisting all bar and restaurants who want out and trying to find them a quick buyer.
“It’s not just the Brits who seem to be suffering, Connie and Margirata from Denmark and Sweden told the Euro Weekly News of what happens if you can’t get a deal and run out of cash. We opened the Nice Bar in Carvajal, trade wasn’t spectacular last year, we got through that running on low cash reserves, we placed on the market for sale but couldn’t find a buyer quick enough, we couldn’t pay the rent so eventually had to hand the keys back in agreement with the landlord and lost every cent we laid out initially for the premises, we had no option, I just hope others get a sale before they are in the same position.”
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