The Food & Drink Group (FDG), the Aim-listed bar group, has announced that it has sold its business to Mainpaint, a company backed by NGI Private Equity, following the appointment of administrators.
The company has disposed of the majority of its bars via a so-called “pre-packaged” administration, including 17 branded and unbranded sites and 17 franchised sites that trade under the Henry J Beans brand.
FDG’s remaining 11 bars, which include Henry J Beans in Bristol and Jamies on London's Charlotte Street, have been left with joint administrators at BDO Stoy Hayward, who are looking to dispose of the group's interest in the leasehold premises.
The sale was for an undisclosed sum and is not expected to result in any return to shareholders.
The group said that after exploring a variety of strategic options over the last six months, including raising new equity and reversing another business into the group, deteriorating market conditions had resulted in the company being unable to achieve a transaction to continue its operations.
In a statement, the Board of the FDG said: “The group has been facing the most challenging economic conditions for decades which has reduced operational performance and has restricted investment in the group's brands.
“These conditions have prevented the group raising the further financing it needed. The sale of the business has secured the jobs of 300 of the group's employees.”
Shay Bannon, joint administrator, said: “A reduction in the amount of disposable income as a result of escalating living costs and household bills have played a role in The Food and Drink Group’s current difficulties.
"This has been further compounded by a period of wet weather which has failed to boost sales during the summer.”
BDO said that it had been necessary to make 125 staff redundant, while eight employees at the group's head office in Chelsea would be employed by Mainpaint.
