Fri, 05 Jun 2020 | BUSINESS SALE
Azzurri Group has engaged advisers to explore a potential sale of the business as the COVID-19 pandemic continues to impact the UK’s hospitality sector. While the process is at an early stage, the company’s adviser KPMG is reported to have begun contacting potential bidders.
Azzurri Group, which is owned by private equity firm Bridgepoint, owns restaurant chains ASK Italian, Zizzi and Coco di Mama. It employs around 6,000 staff across roughly 300 restaurant locations, which have been closed since the coronavirus lockdown began in March with staff furloughed.
Azzurri was created in 2015, when Bridgepoint acquired ASK Italian and Zizzi in a deal worth around £250 million. While a sale is being considered, Bridgepoint is reported to be considering several other options for the company.
In its most recent accounts, filed to the year ending June 30 2019, Azzurri Group said that it had seen “another successful year”. Its total sales were £299.4 million, a 7 per cent increase from the year before, while its adjusted EBITDA stood at £38.1 million, up from £37 million a year earlier.
Its improved EBITDA, combined with lower interest charges, saw Azzurri’s loss before tax fall to £16.3 million from £23.4 million in 2018. The company also reported £20 million in capital investment, with 10 new openings and 29 refurbishments. Its operating cash flow, meanwhile, increased from £15.7 million in 2018 to £21.1 million in 2019.
At the time, the company’s fixed assets were valued at £325.3 million, while its current assets stood at £32.3 million.
The restaurant sector has been heavily impacted by the COVID-19 pandemic, as stores have shuttered and many predict tough times even after lockdown has ended, if social distancing measures have to stay in place for a significant period of time.
Earlier this week, Frankie & Benny’s owner The Restaurant Group said 120 of its restaurants would not reopen. While, last month, Casual Dining Group, which owns chains including Bella Italia, Café Rouge and Las Iguanas, filed for administration and has since sought a buyer for its chains.
View the latest distressed UK businesses here.
Find businesses for sale here.
On the market for the first time in 35 years. During clients ownership they have developed and maintained an extremely popular and highly recognised food led destination establishment that benefits from significant seasonal trade, due to its close pr...
FREEHOLD
A very well presented pub with the advantage of having nine letting rooms and it is much larger than you first think; the original pub having been sympathetically extended into several cottages and having a large extension added too.
FREEHOLD
This is a pleasant eatery located in a high-traffic trading position, in the centre of the village and close to the lake.
FREEHOLD
Please choose your settings for this site below. For more information please read our Cookie Policy
These cookies are necessary for our website to function properly and provide you with access to all features.
These are analytics cookies that help us to improve the way our website works.
These are used to improve the functional performance of the website and make it easier for you to use.