Novus Leisure, the premium bar and restaurant operator, has pulled out of the running to acquire Drake & Morgan, the highly-regarded, bar-restaurant operator, M&C Report understands.
It is understood that the Steve Richards-led group had got through to the second round of bidding for the five-strong chain and had offered around £17m for the Jillian McLean-led business.
It is thought that one or two private equity players are now left in the running for the Imbiba Partnership-backed group.
Drake & Morgan appointed PwC to review its strategic options for the next stage of its growth last year. It is thought the group is hoping to realise a price closer to the high teens/£20m mark.
With Novus having left the table, a McLean-led, private equity-backed management buyout of the group looks the likelier end result, although there has been suggestions that the business could be taken off the market and left to continue its steady expansion in the capital if price expectations aren’t met.
It is set open two new sites over the next few months in Holborn and the Happenstance in St Paul’s.
