The team behind Cote, the French brasserie chain, and Bill’s Produce, the grocery and café concept, is to demerge the two businesses into separate entities, M&C Report understands.
It is thought the move has been taken as the chains, which are backed by Richard Caring, are at different stages of their development and will lead to a new management team being eventually put in place to oversee Bill’s.
At present, the two concepts will continue to be overseen by joint managing directors, Alex Scrimgeour and Harald Samuelsson.
The move will lead to speculation that one or both of the chains could be brought to market, however M&C Report understands the demerger is seen as a piece of much-needed housekeeping to allow both businesses to fulfil their potential and not the start of a sales process.
Cote was formed in 2007 by the management team that sold Strada to Tragus in a £140m deal – Andy Bassadone, Chris Benians, Nick Fiddler and Marcus Cload.
The chain has grown to 31 sites, including 17 in London. The group, which opened 12 new restaurants in the year to 31 July 2011, is expected to take its estate past the 40-site mark by the start of next year. It’s next opening will be at the former Auberge unit at St Christopher’s Place in the capital.
It recently pole position in the inaugural Zolfo Cooper Profit Tracker in association with M&C Report, after delivering CAGR profit growth over a three-year period of 225.3%.
Bill’s Produce, which was founded by Bill Collison, opened its seventh site earlier this month in Exeter.
The business, which also operates sites in Brighton, Cambridge, Covent Garden, Lewes, Islington and Reading, is believed to be looking at opening up to eight Bill’s in total this year.
Openings in Bath, Cardiff, Chichester, Guildford, Horsham and Wimbledon have been mooted.
