Casual Dining Group considering potential sale of entire estate
The group, which owns the Bella Italia, Café Rouge and Las Iguanas brands, filed a notice of intention to appoint an administrator last month 'as a protective measure'; a move that put up to 6,000 jobs at risk.
It had previously been reported that CDG, which is controlled by the private equity giant KKR, was preparing to undergo a radical financial restructuring to help shore up its finances after being forced to close its c.250 restaurant estate because of the Coronavirus pandemic.
Under those plans, it was expected that the group would launch company voluntary arrangements (CVAs) for two of its three core chains, and place the other into administration.
CDG was understood to have appointed the advisory firm AlixPartners to work on the restructuring.
However, this latest development, which was first reported by The Telegraph, reveals that CDG is now in talks with several possible buyers over a sale of the whole group.
In a statement to BigHospitality, a spokesperson for CDG said: “On May 18, as a protective measure, the company filed a notice of intention to appoint an administrator. This is an unprecedented situation for our industry and, like many other companies across the UK, we have been working closely with our advisers to consider our next steps.
“While in the protective period following the filing of our NOI, Casual Dining Group as received strong expressions of interest from interested parties, both trade buyers and investors, regarding a potential sale of the business. This is one of a number of options that we are considering as we formulate a plan for the company.
“We recognise that this is a very difficult time for our employees and we will do everything we can to support them through this period of uncertainty.”
