Circus Bar etc. up for sale, and is Gay Soi 4 going soon?

[zombie]

"Circus Soi 4 Silom Bangkok is now available for sale with an asking price of 4 million Thai baht.

This is a rare chance to acquire one of Bangkok’s best-known LGBTQ restaurant, bar and entertainment venues in the heart of Silom Soi 4. The business is fully set up, currently trading, and in profitable operation, with average monthly turnover generally seen between 2.5 million Thai baht and 4 million Thai baht per month and full POS records available for the last five years.

The venue has operated as Circus Soi 4 for more than five years and was previously known for approximately 30 years as Telephone Pub, one of Thailand’s most iconic LGBTQ venues.

The business includes three connected shophouses with restaurant, bar, outdoor balcony, nightly show space, upper-level viewing areas and a private bar/karaoke room on the top floor. The venue operates at an estimated profit margin of over 30%, subject to buyer due diligence, and has a solid client base with a strong social media following.

The current owners are selling due to other projects outside hospitality and are offering the venue at 4 million Thai baht for a fast sale to suitable new operators. The sale is intended as a full takeover of the operating company, business, lease position, brand, equipment, POS history, social media assets and operational setup, subject to due diligence and legal transfer.

Serious buyers should contact Cameron McKean at cameron@howtopay.com or +66 95 504 1237 by phone, WhatsApp or LINE to arrange a confidential discussion."

 

Above posted via Facebook on 28 May.

 

-There are also stories circulating that by the end of this year developers will take over Soi 4 and that the bars there could move to "Soi Twilight". This may be unsubstantiated though the popular German restaurant inside Soi 4 {opposite Banana Bar} is relocating to Pattaya.

 

Incorrect gossip or does anyone know what really is happening?

 

[Olddaddy]

Well , how long is the lease agreement?⚖️

I guess they can't move you if there is a lease agreement?

Is this Circus that bar opp  the Balcony pub? 🍻 

It has many bad reviews 

Yes I have been there , had good-looking coyote boys dancing 

One Google review said the owners "Wayne " passed away recently and sold it to some new bloke who allegedly has led it slide in customer service, another Google review said the security was "homophobic" 

I guess a very experienced operator could buy it , I imagine the rent would be high though 

Due diligence my dear fellow .....that's what's needed 

Due diligence 📖📚📚📚

 

[zombie]

Yes Circus bar opposite Balcony. No idea re leases.

[Olddaddy]

Going to be hard work too , long hours 🕝, daytime arranging rostered ,shows ,pay ,staff 

Nighttime talking to customers,supervising etc 🕝🕝

[PeterRS]

6 hours ago, zombie said:

Incorrect gossip or does anyone know what really is happening?

The original offer only mentions "lease position". Almost certainly the only people who know what is happening re leases in that soi is the family at the end that owns it.

[Keithambrose]

Contact details look pretty odd, "howtopay.com", which appears to be a platform.

[macaroni21]

A few things about that cited Facebook post in the OP struck me: average monthly turnover of 2.5 to 4 million baht, with "estimated profit margin of over 30%". Firstly, why estimated? Shouldn't there be a precise figure from last audited accounts? Anyway, taking it at face value, the profit -- and this is another issue: what exactly do they mean by "profit margin"? -- would be about one million baht per month. Something tells me "profit margin" may be "gross profit" or "gross margin", to use more specific terminology. This would be earnings before operating costs.

Suppose instead the sellers mean an EBITDA of 30%, yet the asking price is only 4 million baht, giving a sort of P/E ratio of 0.33 which is very low indeed. However, this offer may be because they really, really, need a "fast sale". Either the current owners' "other projects outside hospitality" are desperately in need of cash injection or the bar is facing a huge problem in the months ahead and the present owners do not want to be around for that.

If the latter, it would be consistent with rumours of lease termination or non-renewal in the very near future. The cost of having to find a new location and outfitting it, with no assurance that customers will stay loyal after a move, may be the very prospect the current owners wish to avoid.

 

[macaroni21]

I would add that successful bars tend to have gross profits at about the 60 - 70% level. They would also have net profits at about the 10 - 15% level. Which was why the term "profit margin" and the figure of 30% seemed so odd.

The mention of moving to Soi Twilight was another odd thing, although @zombie spoke of it as rumours. There is no more Soi Twilight to move to; hasn't been for 6 or 7 years.