Mezzanine Group has sold its Storm and Kartouche nightclubs for £2.5m to fund the expansion of its Smollensky’s restaurant chain.
The sites were sold to company shareholders Richard Shea and Jason Smith, who between them hold 14.85% of the shares of the group. The sale is expected to be completed by the end of January.
Mezzanine is currently reviewing three possible sites for prospective 2003/2004 openings of Smollensky's restaurants.
The company is considering selling off other non-core assets to pay for the rollout.
The news came as Mezzanine reported that pre-tax losses for the year to June had increased to £6.4m from £4.8m in the previous year.
Operating losses widened to £5.5m from £3.9m, impacted significantly by start-up costs relating to the opening of new Smollensky's restaurants, and property asset write-downs.
Turnover on continuing operations increased by 8% to £11.8m, reflecting the continued expansion of the Smollensky's brand.
Roddy Sutherland, the company’s chairman said: "Our core restaurants and clubs businesses, have experienced a mixed performance with strong trading at Canary Wharf and our Soho based club Attica, while performances elsewhere in London have been impacted by the decline in tourism spending and the uncertain economic outlook."
"Despite the prevailing economic conditions, the board is greatly encouraged by customer reaction to the new Smollensky's format."
The sites were sold to company shareholders Richard Shea and Jason Smith, who between them hold 14.85% of the shares of the group. The sale is expected to be completed by the end of January.
Mezzanine is currently reviewing three possible sites for prospective 2003/2004 openings of Smollensky's restaurants.
The company is considering selling off other non-core assets to pay for the rollout.
The news came as Mezzanine reported that pre-tax losses for the year to June had increased to £6.4m from £4.8m in the previous year.
Operating losses widened to £5.5m from £3.9m, impacted significantly by start-up costs relating to the opening of new Smollensky's restaurants, and property asset write-downs.
Turnover on continuing operations increased by 8% to £11.8m, reflecting the continued expansion of the Smollensky's brand.
Roddy Sutherland, the company’s chairman said: "Our core restaurants and clubs businesses, have experienced a mixed performance with strong trading at Canary Wharf and our Soho based club Attica, while performances elsewhere in London have been impacted by the decline in tourism spending and the uncertain economic outlook."
"Despite the prevailing economic conditions, the board is greatly encouraged by customer reaction to the new Smollensky's format."
