Interest bill racks up pub’s losses

Large bank interest payments contributed to the most expensive pub in the country recording a loss of over €140,000 last year.

In 2005, publican Charlie Chawke paid a record €22m for the Old Orchard Inn and site at Rathfarnham, Dublin.

Accounts just filed by Orchard Inn Ltd with the Companies Office show that the firm’s accumulated losses increased by €146,943 from €226,141 to €373,084 in the 12 months to the end of December last.

The firm owes €22m arising from the record purchase and in an interview yesterday, Mr Chawke said: “I’m very happy with how the Orchard is doing. It is paying its way and the whole pub group is delighted with how the Orchard is performing. The pub made an operating profit before the bank repayments.”

In all, Mr Chawke operates 10 pubs.

The abridged accounts for 2012 for the Orchard do not disclose the scale of bank interest payments made last year, but they were €553,827 in 2011.

The non-cash depreciation costs of €324,796 show that the pub recorded a cash positive performance of €177,853.

The Co Limerick-born Mr Chawke said the pub recorded revenues of around €5m last year and the business is managed by his daughter, Ali.

Mr Chawke — who lost a leg during an armed robbery at his Goat Grill bar in 2003 — said he has ‘no regrets’ over paying out €22m for the pub.

The accounts give the property a book value of €21.2m.

In the pub trade 48 years, Mr Chawke added: “The Orchard has had a good summer and there has been a pick-up in business in 2013, and over the last three years the business has been increasing.

The Charlie Chawke pub group employs over 400 people and Mr Chawke said: “Things are going well across the group. We’re in a healthy state and would hope to top last year’s performance.”

Mr Chawke said that he was concerned with the reported entry of UK pub chains into the Irish market.