Water Company Co-Owned by Conservative Party Treasurer Files Winding-Up Petition Against Pret A Manger
Background:
Castle Water, a privately owned UK water utility co-founded by Conservative Party treasurer Graham Edwards, has initiated a winding-up petition against the coffee and sandwich chain Pret A Manger. The petition alleges unpaid bills below £1,500.
Pret's Response:
Pret has yet to settle with Castle Water due to a lack of correspondence from the utility company. The chain intends to verify the validity of the debt.
Implications of Winding-Up Petitions:
Winding-up petitions aim to recover unpaid debts and typically represent a final resort. They have the potential to force the sale of company assets, although settlements usually occur beforehand.
Castle Water's Profile:
Established in 2014, Castle Water is among the UK's largest privately owned water companies, serving approximately 500,000 businesses. It receives financial support from the Pears family, prominent London property owners.
Pret's Financial Situation:
Pret's global sales have exceeded £1 billion in 2023, but it has faced financial challenges in its home market due to debts incurred during the pandemic. Criticism has arisen over recent price increases.
Performance Impact:
Pret's decision to discontinue its popular free coffee subscription has led to a decline in sales, particularly in London. Transactions have fallen to levels not witnessed since late 2021.
Recent Developments:
Pret recently abandoned plans to increase its subscription cost from £5 to £10 due to customer backlash.