Soho Clubs and Bars is selling 25% of its business to its three-strong management team, in a deal which values the company at about £20m, according to reports.
Geoffrey Rose, the owner of the company, which operates seven late night venues in London, is understood to be interested in slowly winding down his involvement in the group and is expected to sell more of his shares over the next few years.
The group’s management team is headed by Joachim Ritter, chief executive, who joined the company four months ago, and is currently overseeing a restructuring of the business.
The restructuring has seen Ritter gain a 15.5% stake in the company, with the rest of the management team, Lee Wells, managing director, and Ronnie Smith, the finance director, taking a 6.5% and 3% stake respectively.
According to reports, the company is expected to announce a £3.3m operating profit for the year on turnover of around £20m, compared with a profit of £1.6m in 2005.
Earlier this year the group acquired Raymond’s Revue Bar, which has been renamed Soho Revue Bar.
