Intertain, which this morning announced it was exploring new funding opportunities, has said it has already received interest from a mixture of private equity and high-net worth individuals, and that with the right level of investment it could grow its 27-strong Walkabout brand to 50 sites.
Speaking to M&C Report, chief executive John Leslie said that the group had decided to explore its options after receiving interest from a couple of parties. He also said that the current management team was committed to staying in place to see through the work already carried out on turning the business around.
Leslie said: “We had a couple of expressions of interest and therefore decided to see what the wider level of interest would be. Although it is early days, the level of interest has been strong, all from private equity or high-net worth individuals. We are confident that with the right investment Walkabout can again reach 50 sites.
“Amongst that figure we could return to between 15 and 18 of the towns we left if the business can find the right venues. It wasn’t that the towns were wrong, just the property deals. The exceptional returns generated from our investments in Derby, Carlisle and Blackpool, have given us the confidence to carry on with the upgrading the rest of the estate and we are committed as a management team to continue on that course.”
The group, which owns and operates 32 bars tin total, has appointed Zolfo Cooper Corporate Finance to advise on its options.
Intertain was formed in October 2009 to acquire the prime trading assets previously owned and operated by Regent Inns.
Five years on, it said it was able to report excellent returns from its investment in the Walkabout brand and programme of refurbishments. The most recent Walkabouts to benefit - in Derby, Carlisle and Lincoln - have seen trade increase by an average of 52%.
Since last May, the group’s equity and debt has been held equally by Barclays Ventures, and a consortium owned by investment group TPG Opportunities Partners and Goldman Sachs. They replaced the previous owners, the banks West LB, RBS, Lloyds and Barclays.
