Liberation Group starts search for new funding

The group, which owns 70 pubs across the islands, the Liberation Brewery and the Victor Hugo and Bucktrout drinks distributors, told staff last week that that its board had appointed advisers Sapient Corporate Finance to work on a refinancing deal.

Current majority shareholders LGV Capital, private equity investors who backed Liberation's buy-out seven years ago, want to exit the business.

Parent group the insurance giant Legal and General announced two years ago that it intended to wind up the private equity arm and would not be raising capital for new investments.

'We knew that LGV Capital would at some point be looking to get a return on their investment and sell their stock and they are coming to a point when it is the right time for them to do that. So we are looking for a new partner to help us to grow the Channel Islands business and also our business in the UK,' said Liberation Group chief executive Mark Crowther.

Earlier this year Liberation Group bought West Country-based Butcombe Brewery, which includes 18 pubs in the Bristol, Bath and Somerset area. Mr Crowther said it wanted to grow that UK presence.