Little Chef is in urgent talks with a consortium of US investors over a potential refinancing, according to The Times. KPMG’s corporate finance division is said to be advising the People's Restaurant Group, which acquired Little Chef in October last year for £52m. It has been suggested that a £60.3m sale-and-leaseback deal signed in April, to sell 65 freehold restaurants to Israeli property investment group Arazim Investments, may have left the 230-strong chain with high rental payments. The group’s problems have been heightened by the illness of Lawrence Wosskow, one of the chain’s joint backers. Wosskow suffered a heart attack in the summer. A spokeswoman for PRG told The Times: “We are in the middle of sensitive refinancing negotiations. We need new finance as Lawrence feels he no longer wants to be part of it.”