Thu, 05 Jun 2014 | DIVISION SALE
Tragus, the parent company behind Café Rouge, Strada and Bella Italia, is to sell off its struggling UK Strada brand, involving 56 restaurants, as part of a major restructuring effort.
The aim is to cut its debts from £354 million down to £91 million in a financial and organisational shake-up that Tragus hopes will ensure “a long-term sustainable future for the business”.
The company is also gearing up for a Company Voluntary Arrangement (CVA) that will change lease terms with its landlords and resize the business to hone in on its Bella Italia and Café Rouge eateries.
Peter Saville, Alastair Beveridge and Catherine Williamson of Zolfo Cooper’s Restructuring Services team are on standby to manage the proposed CVA.
Steve Richards, Tragus Group’s CEO, said: “The core of our business is strong; we have a loyal customer base and valued brands but some of these brands, such as Bella Italia and Café Rouge, require innovation and substantial investment to secure their futures.
“Similarly, Strata is a popular restaurant brand beloved by customers, but it needs separate attention and investment to realise its potential."
In the restructuring, the landlords for 51 of the 290-restaurant portfolio would be asked to agree rent reductions of 40 per cent for 19 outlets and 50 per cent for the others. Tragus plans to end about 30 to 40 of these leases over the next few years.
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