UK's Restaurant Group sells Frankie & Benny's and Chiquito brands

hl.co.uk:

We don’t support this browser anymore.
This means our website may not look and work as you would expect. Read more about browsers and how to update them here.

Newsroom

Newsroom articles are published by leading news agencies. Hargreaves Lansdown is not responsible for an article's content and its accuracy. We may not share the views of the author.

HL Podcast

HL Insight

The Restaurant Group (TRG) on Monday agreed to sell its loss-making Frankie & Benny's and Chiquito brands to Cafe Rouge owner Big Table Group as it looks to bolster margins and cut debt.

Article originally published by Reuters. Hargreaves Lansdown is not responsible for its content or accuracy and may not share the author's views. News and research are not personal recommendations to deal. All investments can fall in value so you could get back less than you invest.

Published by

11 Sep 2023

Wagamama owner TRG said it would pay 7.5 million pounds ($9.38 million) to private equity-backed Big Table as part of the deal, which includes 75 sites and restaurants. The buyer will pay TRG a nominal value of 1 pound.

TRG shares were up 6% to 50 pence by 0703 GMT.

The company over the past year has struggled with financial losses and last week said Chairman Ken Hanna would step down after months of pressure from activist investors to change its management and improve profitability.

«The Board is continuing to actively explore its strategic options to further accelerate margin accretion and deleveraging,» it said.

The divestment means that TRG would focus on three divisions — Wagamama, Pubs and Concessions, the group said.

«We ...believe that divesting the Concessions business could be a neat way to assuage debt concerns without diluting the quality of group