SFI Group has taken its 29-outlet Bar Med chain off the market after receiving a best offer worth only a third of the £30m it was looking for, a report in the Times today says.
SFI has been trying to sell Bar Med and/or its Latin bars since November last year, when it revealed a £20m black hole in its accounts caused by a "significant" overstatement of assets and understatement of liabilities.
However, the best offer for the 29 Bar Meds, which are believed to turn over an average of £940,000 an outlet, was one of about £10m from Michael Cannon, the pubs entrepreneur who has made more than £100m from buying and selling Devenish, the Magic Pub Co and Morrells of Oxford.
When Cannon sold Morrells to Greene King last summer for £67m, he retained 18 pubs, including the Que Pasa chain, and is now seeking to expand Que Pasa Bars by acquisition.
The attempt to sell the chain is known inside the company as "Project Houston", which observers believe may be a reference to the famous statement by Jim Lovell, commander of the Apollo 13 moon mission after an explosion on board the spacecraft.
SFI, which also owns the Litten Tree and Slug and Lettuce chains, wanted to sell its Bar Med and Latin chains to try to reduce its debts of £130m. Trading in its shares has been suspended since November while Tim Andrews, its finance director, and the accountancy firm Price Waterhouse Coopers conduct a financial review. It is reckoned to have invested £40m in Bar Med since 1996.
Analysts are expecting more property write-downs at the company, which has been selling off unbranded and poorly performing sites. However, the Times quotes "insiders" who told it SFI's financial position is not as parlous as some commentators have claimed and that its banking syndicate, led by Royal Bank of Scotland, is not demanding a fire sale of assets.
SFI has been trying to sell Bar Med and/or its Latin bars since November last year, when it revealed a £20m black hole in its accounts caused by a "significant" overstatement of assets and understatement of liabilities.
However, the best offer for the 29 Bar Meds, which are believed to turn over an average of £940,000 an outlet, was one of about £10m from Michael Cannon, the pubs entrepreneur who has made more than £100m from buying and selling Devenish, the Magic Pub Co and Morrells of Oxford.
When Cannon sold Morrells to Greene King last summer for £67m, he retained 18 pubs, including the Que Pasa chain, and is now seeking to expand Que Pasa Bars by acquisition.
The attempt to sell the chain is known inside the company as "Project Houston", which observers believe may be a reference to the famous statement by Jim Lovell, commander of the Apollo 13 moon mission after an explosion on board the spacecraft.
SFI, which also owns the Litten Tree and Slug and Lettuce chains, wanted to sell its Bar Med and Latin chains to try to reduce its debts of £130m. Trading in its shares has been suspended since November while Tim Andrews, its finance director, and the accountancy firm Price Waterhouse Coopers conduct a financial review. It is reckoned to have invested £40m in Bar Med since 1996.
Analysts are expecting more property write-downs at the company, which has been selling off unbranded and poorly performing sites. However, the Times quotes "insiders" who told it SFI's financial position is not as parlous as some commentators have claimed and that its banking syndicate, led by Royal Bank of Scotland, is not demanding a fire sale of assets.
