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Niche fast casual restaurant group

Reference
D12217
Turnover
£5m to £10m
Sector(s)
Hotels & restaurants
Region(s)
London, South East England
Added
06 January 2025
Offers required by
January 24, 2025 - 12:00pm

Business description

This well-known London based niche fast casual restaurant group, which currently operates out of 10 licensed premises (including 3 concessions), 9 of which are in and around London. Established more than 10 years ago, as a consequence of the Covid-19 pandemic, the Company entered in to a Creditors Voluntary Arrangement (“CVA”) in Q3 of 2023.

With the CVA in place, the Company streamlined head office costs, agreed new rent deals with several of its landlords and divested itself of 4 non-profitable restaurants and closed its prep kitchen.

Whilst the business continues to operate at a high level of execution in terms of product and standards at site level, the Company has continued to burn cash burn since the CVA and, due to a combination of Covid legacy debt and a constantly inconsistent trading environment it is unable to continue to make payments into the CVA. Consequently, we have been engaged to market the business and assets with a view to a sale by a subsequently appointed Administrator.

Assets include the restaurants operating out from 7 leased premises and 3 profitable concessions from 3rd party leisure and hospitality sites.

According to the management accounts turnover to November 2023 was more than £9m with 9 of the sites generating a profit at the operating level, before head office costs, although the Net Loss to November 2023 was slightly in excess of (£1,000,000) and for the 8 months of the current financial year 3was approximately (£220,000) on a turnover of just under £5m.

In addition to the restaurants, the business benefits from trademarks and a healthy social media presence, particularly on Instagram.

If you are interested to know more about the above opportunity, please note that offers must be received by no later than 12:00pm on Friday 24 January 2025 with a sale concluded by no later than close of business on Friday 31 January 2025 and, therefore, only parties that are able to work within this time frame should respond. However, we reserve the right to close the bidding early or extend the deadline, without liability or notice. 

Preference will be given to companies currently operating within a similar space as we would consider that specialist knowledge is essential to the future success of the business. As the management team would like to remain with the business, interest is also sought from investors willing to provide strategic investment to drive the growth of the business.

Due to the confidential nature of this sale, interested parties will be invited to sign a non-disclosure agreement before further details can be released and will be asked to provide proof of funds with any offer submitted, although we reserve the right to request proof of funding at any time during the sales process and may discontinue negotiations with any party that does not provide satisfactory evidence when requested.

If you are interested in finding out more about the above opportunity, please contact us at your earliest opportunity.

NB: Applications received within 48 hours of the deadline may be too late to receive an NDA and Information Pack.

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