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Morning Briefing for pub, restaurant and food wervice operators

Fri 31st Oct 2014 - Propel Friday News Briefing

Story of the Day:

Ponti’s reduces operating losses, looks to raise equity: Ponti’s Retail, operator of the Ponti’s Italian Kitchen and Caffe Italia chains, and controlled and led by Stefano Ispani, has reported a pre-tax loss of £2.31m in the year to 26 January 2014. The loss was a turnaround from a pre-tax profit of £358,000 the year before, when the company had an exceptional gain of £2.18m but an operating loss of £1.67m. Turnover dropped to £12.7m from £13.33m in 2012. Ponti's Retail said: “The company incurred an operating loss before exceptional items of £1.5m and at the year-end had net liabilities of £1.43m. Turnover fell by 4.7% due to site closures and the impact of trading conditions. An improvement in the gross profit margin to 36.1% reduced the impact on gross profit to 3.9%. Administrative costs were better controlled during the period and reduced by 7.9% to £6.1m. The group has provided for the closure costs, £276,000, for the site at Stansted airport although the site continued to trade until the end of February 2014. If actual trading performance or funding availability is materially different to that expected the company may not be able to continue trading. Should the company be unable to continue trading adjustments would be required to reclassify assets and liabilities and to provide for other liabilities that would arise in such an eventuality. The directors recognise that the net liabilities position needs to rectified and efforts will be made to improve the health of the balance sheet. However, with £984,000 due to other group companies, £493,000 of loan support from the directors and £1.19m of provisions, the position is not considered to be as difficult as first impressions may suggest. Whilst ebitda and cash forecasting continue to be important, the focus on the labour costs being incurred has increased significantly.” Since the year-end £300,000 has been raised in short-term loans towards working capital. The company said it has now created a business plan based on the development of its successful Ponti’s Italian Kitchen brand. It added: “This will help our parent company raise equity in the market place, probably sourced from high net worth individuals.” The company has an onerous lease provision of £1.24m against its High Wycombe site, which is “incurring heavy losses”.
 

Company News:

Spirit agrees extension to Greene King offer deadline: Spirit Pub Company has given Greene King an extension to the deadline to make a firm takeover offer, allowing the two companies to agree the finer points of the £723m deal. The deadline for a firm offer has been pushed back to next Tuesday (4 November) at 5pm and could be extended further with Spirit’s consent. Spirit stated yesterday morning: “Further to the announcement on 20 October 2014 regarding a possible offer for Spirit by Greene King, the Board of Spirit remains in discussions with Greene King regarding the terms of the possible offer. The Board remains willing to recommend an offer at the value of the revised proposal set out in that announcement, but this remains subject to the satisfactory resolution of the other terms of the possible offer.” The enlarged Greene King, of which Spirit shareholders would own 29%, would operate around 1,800 managed pubs. Spirit’s prize assets are its Chef & Brewer (circa 130 sites) and Taylor Walker brands (circa 120 sites), with the latter group comprising of many high quality pubs in central London locations. The Spirit takeover would, however, produce a sizeable increase to Greene King’s value-food estate with Fayre & Square and Flaming Grill joining the existing Hungry Horse estate to create a value estate of well above 400 pubs.

Mitchells & Butlers claims sector first with Nicholson’s loyalty app: Mitchells & Butlers’ Nicholson’s brand has launched a brand new app called Hop Circle which is claimed to be the first pub-based loyalty and rewards app to be released in the UK. The app is free to download on both iOS and Android devices and offers customers rewards and benefits for their loyalty, plus "fun features" designed to "enhance the pub-going experience", the company said. One of the app’s star features is the Ale Trail, guiding users through five London tours of notable Nicholson’s pubs, with a 25%-off discount the reward for completing each trail. The app will also allow users to browse a collection of tasting notes in the Ale Library, a growing encyclopedia of more than 150 ales, arranged by brewer, style, strength and season. The app locates the nearest Nicholson’s pub, and allows users to get 25p off a pint of cask ale. Further offers and promotions will be automatically downloaded to the My Rewards section. The app also runs a collector mechanic in the background, ensuring that the user will be rewarded regularly for their loyalty throughout the year. Everyone who downloads the Hop Circle app will receive a voucher entitling them to a pint of Nicholson’s Pale Ale for £1, redeemable in any of the group’s 78 pubs across the UK.
 
UK’s ‘best pub licensees’ report eighth year of growth at Bull’s Head, Repton: Richard and Loren Pope, former winners of the BII Licensee of the Year title, have told Propel that they are seeing a eighth consecutive year of growth at the Bull’s Head, Repton, Derbyshire, their award-winning first pub. The site, which takes £3m a year, has seen 15% like-for-like food sales growth this year. Richard Pope said: “It’s still in rude growth – food was up 17% in like-for-like terms last week.” Elements of their retail offer have been “borrowed” by many other operators - Marston’s has installed the Popes’ pizza offer in a number of its Revere premium pubs, or example. The pub’s fresh gelato offer, involving specialist equipment imported from Italy to make fresh gelato each day, is also an idea borrowed by a number of operators. Meanwhile, the couple’s second pub, The Joiners Arms in nearby Quarndon, Derbyshire, has seen a six-fold increase in turnover since the couple took it over a year ago. It is understood that negotiations are underway with Enterprise Inns over a plan to double the trading area in a “very substantial” investment by the couple. Meanwhile, the couple, who trading vehicle is called Chilled Pubs, has hired Sarah Shipton, former director of finance at Punch Taverns, as its finance director.
 
Great Northern Inns to open second Copper bar: Great Northern Inns is to open a second Copper bar and bistro, in Mapperley, Nottingham. The new outlet is opening in the former premises of Capers bar and bistro, which closed three weeks ago. The bar is in the final stages of construction and is expected to open in the second week of November. Copper also has an outlet in West Bridgford, Nottingham. The bar will have breakfast, cafe and evening menus, and sell craft beer, cask ale and wine. Great Northern Inns also operates the Cross Keys, Ned Ludd and the Approach in Nottingham city centre. Geoff Pemberton who will run the site with his wife Vicky, said: "Mapperley was the next logical place for us to try Copper out. Mapperley has a similar crowd to the one in West Bridgford and has a busy thoroughfare to and from Nottingham. We think that even more bars might follow."

YO! Sushi confirms new grab-and-go concept in partnership with SSP:
YO! Sushi has confirmed a partnership with SSP to launch a new concept, YO! To Go in Charing Cross Station in London in December. The concept involves a ten-cover kiosk selling hot and cold Japanese food. Vanessa Hall, chief executive at YO! Sushi said: “Charing Cross is a busy thoroughfare benefiting from high footfall from local office workers, residents and tourists. We are really excited to be launching our first YO! To Go standalone format and believe customers will enjoy our diverse range of authentic Japanese hot classics and sushi boxes on offer as well as our striking, cool design. We are delighted to be working with SSP again to bring a slice of urban Tokyo to all commuters at one of London’s busiest train stations.” Lucy Knowles, chief marketing officer at SSP, said: "We have developed a great relationship with YO! Sushi in the UK and overseas and we are very proud to be their partners in this first example of their new style of offer. We are confident it will bring the YO! Sushi brand to an even wider audience in a fun, energetic way and we are looking forward to building on this launch."
 
P&O Ferries stocks cask ale after resurgence of interest: P&O Ferries has begun to serve Marston’s Pedigree on crossings to Europe after noting a resurgence in cask ale popularity. Paul Wilkin, the category manager for P&O Ferries, said: "Real ale has been having a resurgence over the last few years and I wanted to be able to offer a traditional hand-pulled pint on the bar of the ferries just as you would see in a traditional pub. The hand-pull demonstrates that we are a 'proper' bar, whilst the Marston's Pedigree brand shows that we are serious about beer quality and that there are no compromises whilst being at sea. Marston's were able to provide the service and technical support that we needed, and feedback this year has been very positive, along with the volumes."

Boston Tea Party reports 11.5% like-for-like sales growth in latest financial year:
The cafe operator Boston Tea Party has reported like-for-like sales growth of 11.5% for the 52-week period ending 22 October. Taking into account the contribution of new openings, sales growth reached 39% and totalled £11m. Managing director Sam Roberts said: “I am extremely pleased to report that each of the 15 cafes in the group is making a very positive contribution to the great success that Boston Tea Party has seen over the past 12 months. It is very pleasing to note that we are growing healthily both in terms of numbers of transactions and transactions values. Having recently won the Cafe Life award for the best coffee chain, being named in the top 25 places to eat brunch in the UK by The Times, as well as the top accolade of three stars from the Sustainable Restaurant Association, we are in a very good place to drive the business forward over the next 12 months and beyond.”

BrewDog unveils plans to expand brewery and create 300 jobs: Scottish brewer and retailer BrewDog has unveiled plans to increase the size of its Ellon brewery and create 300 jobs. The company stated: “Due to the strength of demand for our craft beers at the moment, even with all our new tanks arriving, our current brew-house and fermentation capacity is likely to be maxed-out by the end of 2015. We are planning a new 4,500m2 building, which would join onto our current brewery building. This building would house an amazing new 300HL brew-house. In addition to the brew-house we would also build a new tank farm on this site. We are hoping to have all of this installed and operational by the start of 2016 and we will hopefully start construction on the new building at the start of the year.” The company stressed that it still ‘tiny’ compared to US craft beer produces. It stated: “We are still less than 7% of the size of Sierra Nevada and still just a fraction of the size of the likes of Lagunitas, Stone, DogFish Head and Victory. BrewDog is currently 0.046% of the UK beer market, meaning that just one in every 2,200 beers drunk in the UK is a BrewDog beer. We can grow ten times our current size and we will still be less than 0.5% of the UK beer market. We are absolutely tiny in the context of UK beer consumption overall, and we are determined to grow and also expand the craft beer category to get as many people as we can to share the passion we have for craft beer. The expansion plans will also see us create an additional 300 jobs in Ellon and across the UK over the next three years as we continue our mission to make other people as passionate about great craft beer as we are.”
 
Intertain site in Doncaster to open until 5am: The Walkabout site in Doncaster has begun trading until 5am, with a brand called Candi operating from midnight. Organisers believe it is the latest licence ever given to a Doncaster nightclub, and goes beyond most venues which currently stay open until 2am or 3am. The club is the brainchild of promoter Lucinda Cozens, who said: “Staying open until that time is pretty extreme, I have to admit. But winter can be pretty damp and grey and miserable so we want to put a bit of sparkle back for people going out and having a great time. The club is going to be totally separate and different from Walkabout. We are going to have lots of promotional appearances and special events going on and every week we will be transforming the place so it will look very different. We chose the name because we want the club to have a sweet theme. It will be very pink and glittery with lots of sweet treats for those who come along.” The club will have room for more than 1,000 people.
 
Carlsberg partners CPL Training to offer free-trade licensees social media training: Carlsberg UK has partnered with the training specialist CPL Training to create a bespoke social media training package available exclusively to its free-trade customers. The "Essential Guide to Social Media" will provide licensees with information, advice, hints and tips on how to get started with social media, which platforms to engage with, how to find an online audience for their business, how to grow and retain that audience, and ultimately how to increase profits by utilising social media. Kathryn Purchase, director of customer marketing at Carlsberg UK, said: “From our on-trade customer research, we identified that the majority of licensees have a strong desire for further training on social media. Many licensees know they need to get involved in social media, but have no idea to how to get started, or how to use it to grow their business. Getting social media right can be a daunting task, and this is something both Carlsberg UK and CPL Training recognised when we were developing this course, and we are confident it is accessible to a wide variety of customers, while still retaining the right level of expert information and advice.”
 
Rosa’s Thai Cafe opens first West London site: Rosa’s Thai Cafe has launched its first West London location, setting up shop in a Grade-II listed building on the Fulham Road in Chelsea. It is the fifth outlet for the company, which is led by husband and wife team Alex and Saiphin Moore. The Chelsea outlet is the first in the chain to have a dedicated cocktail bar serving blends such as the Thai Rum Coffee Cocktail, Rosa’s version of an espresso martini, and a Ginger and Pomelo Leaf Martini, from £7.50. In addition the Thai brewery Chang has installed its first draught beer fount in a UK restaurant.
 
Hospitality Jobs UK hires Dawn Redman as non-executive director: Hospitality Jobs UK, the online recruitment business, has hired the recruitment specialist Dawn Redman as a non-executive director. Hospitality Jobs UK's head of operations, Marian Stredwick, said: “Dawn’s extensive recruitment knowledge within the hospitality sectors will be invaluable to the continued growth of our on line recruitment service.” Redman said: “I have taken on this non-executive role after several months of discussions to understand what the future looked like for the business. With a strong marketing strategy and huge investment in place, I am particularly excited about the future developments, areas of which include legislation and market trends, a news information hub, student and study zones, and partnerships with Job Centre Plus and government initiative schemes.”
 
£1m Sakana restaurant opens in Manchester: A new £1m restaurant, Sakana, has opened in Manchester, a conversion of the former Chicago Rock Cafe building on Peter Street. Only the ground floor bar and teppanyaki and sushi restaurant will open initially. A fine-dining restaurant and bar on the upper floor will follow on 27 November. The venue will have capacity for 450 people inside when it fully opens, including open air seating at the front. The Japanese restaurant on the ground floor will have a sushi bar, robata grill and two teppanyaki areas where customers can watch dishes being freshly prepared. Stewart Yip, of the Middleton food wholesalers Chi Yip, and the  owner of two restaurants, Red Chilli and Ocean Treasure, in Manchester, is behind the venture, along with his sons Simon, Andy and Ricky and cousin Tim Yip, who together run the Rock Star Leisure group.

5cc opens fourth London site: The London cocktail bar company 5cc has opened its fourth site, in the Electricity Showrooms in Hoxton Square, East London. The company said 5cc Electricity Showrooms has "taken inspiration from its sister bars at the Well & Bucket, Harrild and Sons and Exmouth Arms", while keeping the site’s historic identity. The cocktail bar has high leather chairs, booths and copper bartops, neon-lit flooring and black sheen walls. 5cc said guest DJs will be playing "soul, old school rock ’n’ roll and rhythm and blues".

Bel & The Dragon Group to open sixth site: Longshot Country Inn, led by Joel Cadbury and Ollie Vigors, will open the George in Odiham, Hampshire on 10 November, the company’s sixth site. Bel & The Dragon at The George, styled in Bel & The Dragon’s distinctive "cosy and classic manner" by interior designer Nicola Harding, herself born in Odiham, will have ten "beautifully appointed" bedrooms. Ronnie Kimbugwe, a Longshot partner and group head chef, who previously spent seven years with Gordon Ramsay, has created a menu that will focus on British food with "a huge emphasis on provenance and quality".

Cafe Grounded applies to open sixth site: The West Country coffee shop chain Cafe Grounded has applied for planning consent to open its sixth site, this time on Keynsham High Street in Somerset. The site, is a listed building within the conservation area of the town but is currently an empty shell. Cafe Grounded opened its first site in Redfield in January 2008, followed by others in Bedminster, Gloucester Road in Bristol, Brislington and Corsham in Wiltshire. It is owned by property developer Tobie Holbrook, who said in a statement accompanying the planning application: "We have a policy to promote and encourage local musicians and artists. We would like to offer acoustic music performances varying from contemporary to jazz and folk to classical a couple of evenings a week. We also invite local artists to exhibit their paintings and photographs free of charge on the walls of the eating area and the proposed gallery."
 
Enterprise Inns hosts inaugural supplier briefings: Enterprise Inns has hosted a series of briefing sessions for suppliers to help forge closer working relationships. The UK’s largest leased and tenanted pub company welcomed 140 supplier representatives, from brewers to in-pub entertainment providers, to its Solihull head office for an inaugural series of briefings lasting two days. Suppliers that attended included Bath Ales, St Austell Brewery, Global Brands, Pipers Crisps, Nestlé Professional, and the Meantime Brewing Company. The briefing sessions included presentations on Enterprise’s new commercial structure and team, which has undergone significant changes in the last six months to enable the business to better support its publicans and bring a wider range of support and opportunities, and the company's 18-month rolling marketing plan, with details of key promotional campaigns that will be run to support publicans, and the opportunities these will present to suppliers through deals, sponsorship, promotions, and point-of-sale. Ann Douglas, a senior buyer at Enterprise, said: “We had a fantastic response from suppliers, with all sessions fully booked, and no fewer than 140 representatives attending. The majority of suppliers brought representatives from both sales and brand marketing teams, all keen to be part of how we develop and maintain our very important supplier relationships, which in turn support our publicans.”
 
Network Rail wins planning consent for Southwark restaurant plan: Plans by Network Rail to relocate the Union Theatre and create a row of new restaurants in the railway arches south of Union Street in Southwark, South London have been approved by planning officers. Last year Network Rail received planning permission to turn the arches, formerly occupied by small businesses, into office space. More than 10,000 people signed an online petition calling on the company to save the cluster of local businesses, which included the Union Theatre. This year, in a reversal of its previous insistence that office space was the only viable use for the arches, Network Rail submitted new plans for a restaurant-led scheme on the same site. The latest planning application was approved last week by Southwark Council planning officers. Union Yard includes five arches under the Blackfriars to Elephant & Castle line. Two arches will be devoted to the theatre while three others will be converted to restaurant use.

Hakkasan expands US nightclub business: Hakkasan, which derives one third of its turnover from UK restaurants and almost two thirds of turnover from restaurants and nightclubs in the United States, is to expand its US nightclub business with the opening of a revamped nightclub in San Diego, California called Omnia San Diego. Hakkasan is also currently reworking space in Caesar's Palace, Las Vegas to open a nightclub called Omnia. The company is looking to develop Omnia into a chain of clubs around the country. The San Diego nightclub will move into the space currently occupied by the Stingaree club, which will close  on 2 November. Nick McCabe, the president of Hakkasan, told USA Today that the Omnia brand would be designed as a performance-focused venue, not one designed to encourage celebrity interactions. "Now that social media offers us almost unfettered access to celebrities, nightclubs have moved in a different direction and our customers seek valuable experiences in the form of performances," he said. "Omnia will be a very performance-focused venue."

Loungers relocates headquarters to larger premises: Loungers is relocating its head office in Bristol to larger premises, moving from its current base on St Thomas Street to 15/16 Lower Park Row, after a period of rapid expansion. The group, which opened its first venue on North Street in the Bedminster area of Bristol in 2002, has taken the 4,694 square foot office property on a five-year lease off a quoting rent of £10 per square foot. Tom Dugay, office specialist at Alder King, which arranged the letting, said: “Loungers is a well-known and very successful restaurant/café chain that has expanded beyond Bristol to other locations across the UK. Its rapid growth over the past 12 years, together with its ambitious expansion plans, required it to have a larger office base in its home city and the premises at Lower Park Row will serve them well.”

Dover Street Wine bar acquired by Novikov:
The Dover Street Restaurant and Bar in Mayfair, Central London has closed after being sold to the Russian restaurant chain Novikov, the London Evening Standard has reported. The lease has reportedly been bought by Novikov, which currently has one outlet in London, in Berkeley Street, Mayfair, for a premium of more than £1m. The London newspaper reported that a notice on the wine bar door said: “It is with deep regret that Dover Street Restaurant and Bar has officially closed, following the passing of its owner in July … thank you for your custom … and for all the great times that we have shared together in this very special place.” The wine bar has been in operation for more than 35 years. Novikov is owned by Arkady Novikov, whose empire runs more than 50 restaurants in Moscow.

Spirit to re-open pub closed for six years: Spirit Pub Company is to-re-open a pub in Huntingdon that has been closed for six years, according to local media reports. The Falcon Tavern was last open in 2008. Now Spirit is carrying out work on the building ahead of the expected re-opening by Paul Hepworth, landlord of a Northampton real ale pub, the Olde England. The pub is thought to be the oldest in Huntingdon. A spokesman for the Huntingdonshire branch of the Campaign for Real Ale said: “The details we’ve had are that the lease on the Falcon is being acquired by Paul Hepworth who runs the Olde England pub in Northampton and a pub in Wellingborough. The owners of the Falcon, Spirit, have agreed to carry out major work on the roof, ceilings and cellar and the new owner will be completely refurbishing the interior. The pub will offer a very extensive range of real ales, five from the Marston’s group, with another 10 handpumps for local independent breweries. A feature will be made of the historical connections with the civil war – Cromwell’s Model Army was for some time based at the Falcon.”
 
Hall & Woodhouse applies to convert pub to houses in 'forward planning': Hall & Woodhouse has applied to convert the White Harte Inn in South Street, Cuckfield, Sussex into two houses – as a piece of forward planning for when the current licensees retire. Jim Ayling, landlord of the pub, told local media: “We are here as long as we want to stay here. Hall and Woodhouse applied for planning permission because no one was interested in buying the pub. Once we leave, unless someone comes up with the money to buy it, then it will become houses. It has been in the pipeline for a while. Its future is dependant on someone buying it as a pub.” Matt Kearsey, hospitality director at Hall and Woodhouse, said: “We have no immediate plans to close the White Harte, and are committed to supporting James and Jackie in running their business for as long as they wish to be there. We are considering options for when they retire, but we hope this will not be for a good while yet.”

Trade accountant produces app to support the sector: The trade accountant Roslyn’s has produced a new app that includes tax tables and other key financial advice. Geoff Temperton, operations director for Roslyn’s, said: “With the support of the app, our clients can obtain quicker information to grow the profitability of their businesses. The app is free of charge for anybody to download, not just our clients, as Roslyn’s is committed to helping the industry become more sustainable.”

Burger King clears Canadian regulatory hurdle of Tim Hortons takeover:
Burger King's planned purchase of the Canadian coffee-and-doughnut chain Tim Hortons has cleared a major regulatory hurdle, with Canada’s anti-trust watchdog giving the proposed tie-up the green light. The $11bn deal remains subject to other approvals, including Canada’s determination that the merger would provide a so-called net benefit to the Canadian economy. The Canadian Competition Bureau said in a statement that, based on its analysis, the transaction was unlikely to reduce or prevent competition in the country’s fast-food industry, given the number of competitors and low barriers to entry.

Aloft opens second site: The hotel company Aloft has opened its second site, the Aloft Liverpool Hotel, which has been converted from the former Royal Insurance headquarters at No 1 North John Street. The 116-bedroom property which can accommodate 250 guests is only the second Aloft Hotel in the UK and the first of five new properties to open across Europe. The conversion removes the property from English Heritage’s Buildings at Risk register. Liverpool was chosen by Aloft as it is a “fun, vibrant city with a strong arts culture and music tradition which fitted the brand’s friendly informal image", said Colin Bennett, UK and Ireland general manager of Aloft's US parent company, Starwood, which also owns the Sheraton and Le Meridien hotel brands.
 
Eden Collection owner submits £13.m plan for Devon boutique hotel: Rigby Group, parent company of the Eden Hotel Collection, has submitted a planning application for a £13.5m, 51-room boutique hotel and spa on the seafront near Salcombe, South Devon. The new hotel will take over the site of the current Tides Reach Hotel, which closed more than a year ago and was acquired by Rigby Group in January this year. The new boutique hotel, spa and restaurant will operate under Rigby’s award-winning Eden Hotel Collection, which includes properties such as the Bovey Castle hotel and estate on Dartmoor and the Buckland Touts-Saints Hotel in Kingsbridge. Mark Chambers, managing director of the Eden Hotel Collection, said: “Submitting a planning application is a significant milestone for our new Tides Reach Hotel proposals and we have been very encouraged by the positive reaction to the designs during our drop-in exhibition and consultations."

Village Urban Resorts awarded Cask Marque accreditation after 'embracing craft renaissance': Village Urban Resorts Group has just been awarded the Cask Marque accreditation for beer quality across its entire group of 25hotels. Supported by Marston’s Beer Company, the Village Urban Resorts Group has put all of its hotels through the rigorous assessment process demanded by Cask Marque and is one of only two hotel groups in the UK that has demonstrated its commitment to beer quality in this way. As the preferred cask supplier to the group Marston’s provided its team of 31 "beer quality technicians" to implement a beer excellence programme in each hotel. Anthony Davies, food and beverage director for Village Urban Resorts, said: “We are embracing the cask and craft beer renaissance in the UK by putting it at the forefront of our offer in hotel bars. Key to this approach is top quality beer served to a recognised standard. We are delighted to have achieved the high standards that Cask Marque have set and will be very proud to display our hard-earned plaques.”

Prezzo agrees deadline extension for private equity offer: The Italian restaurant company Prezzo, led by Jonathan Kaye, has agreed an extension to the deadline for an offer from the private equity companies Advent Capital and TPG Capital. Prezzo reported on 2 October that it had received preliminary proposals in relation to possible offers from Advent and TPG. Takeover Code rules meant a deadline of 5pm today was set for the private equity firms either to announce a firm intention to make an offer for the company or to announce that they do not intend to make one. Prezzo said: “Following the receipt of requests from Advent and TPG, the board has sought the consent of the Takeover Panel for an extension to the deadline in order to further explore each of the proposals. Both Advent and TPG have had access to information which has been made available by the company.” The Takeover Panel has consented to an extension to the deadline so that Advent and TPG must now, by no later than 5pm on 14 November, "put up or shut up". Prezzo added: “This announcement has been made without the prior agreement or approval of Advent or TPG and does not constitute a firm intention to make an offer under Rule 2.7 of the Code. There can be no certainty that an offer will be made for the company, nor as to the terms on which any offer will be made. A further announcement will be made in due course, as appropriate.” Phillip Kaye, the patriarch of the Kaye family, owns a 44% stake in Prezzo and the Kaye family, through a number of investment vehicles, control more than 58% of the business, which has a market value of £328m. Media reports suggested this month that the private equity approach, at a nil premium, is the result of the Kaye family quietly sounding out interest from private equity groups to take it private. The nil-premium element suggested the proposals already have the family’s backing. The Kaye family attempted to take Prezzo private five years ago, but plans were derailed by volatile debt markets. Advent and TPG are thought to be interested in using the Kaye-backed restaurant as a platform to create a larger Italian restaurant business. Prezzo has no debt, which makes it a strong proposition for private equity bidders interested in using the company’s balance sheet to fund expansion plans by loading it with debt. It has been suggested that the vehicle may bid to buy Gondola Holdings' Ask Italian and Zizzi businesses, which were founded by Jonathan's cousins and Phillip's sons, Adam and Sam Kaye.

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