Frankie & Benny’s owner completes £1 sale
The Restaurant Group (TRG) has completed the sale of its “loss making” leisure business, including the Frankie and Benny’s and Chiquito chains, to rival Big Table Group for £1.
The sale, the agreement of which was announced in September, comprises the business’s 75 sites as well as its associated management and restaurant teams.
Under the terms of the deal, TRG has made a £75m ‘dowry’ payment to Big Table Group, the operator of brands including Bella Italia, Las Iguanas, and Banana Tree.
TRG, which owns the Wagamama restaurant chain and Brunning & Price pub group, has been in the process of “rationalising” its leisure estate over the course of the year. This has involved the disposal of a number of loss-making sites, with some being converted to Wagamama restaurants.
As of December 2019, the group’s leisure estate comprised 350 sites, this number had dropped to just 75 prior to the sale.
Andy Hornby, chief executive officer of TRG, said in September that the sale accelerates its medium-term strategic plans to increase adjusted earnings margins and reduce its leverage.
Alan Morgan, chief executive officer of the Big Table Group, had added: “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.”