The Restaurant Group (TRG) have announced that they have agreed to sell their leisure business which includes Chiquito and Frankie and Benny’s.
TRG are to sell the leisure business to rival Big Table Group and will pay £7.5 million in cash to Big Table who owns Café Rouge to buy the loss-making business.
TRG closed around 40 of their sites due to weaker trade and activist investors at Wagamama are putting pressure on TRG to offload the business to boost profits.
Andy Hornby, chief executive officer of The Restaurant Group, said: “A sale of our leisure business significantly accelerates our medium-term strategic plans to increase adjusted Ebitda (earnings before interest, tax, depreciation and amortisation) margins and reduce leverage.
“On behalf of TRG, I would like to express our massive thanks to the extraordinarily hardworking and dedicated teams across the leisure business who have made huge improvements in the customer proposition over the last few years.
“We wish them all well as part of the Big Table Group.”
Alan Morgan, chief executive officer of the Big Table Group, said: “Creating, developing and acquiring brands that complement our existing portfolio whilst offering widespread consumer appeal is a fundamental part of our growth strategy.
“This exciting acquisition forms part of that strategy and we are delighted to be welcoming this new team into The Big Table Group.”
