FRP’s Restructuring Advisory team, have completed the sale of restaurant and bar business East Coast Concepts to an investment group in a deal that protects more than 250 jobs.
FRP worked with the Manchester-based company, which operates the Neighbourhood and Victors brands, over several months to help it navigate through the impact of the pandemic and secure a long-term future.
A pre-pack sale of the business and assets was completed to an investment group led by Naveen Handa, of leisure company The Cairn Group. The deal transfers all five of East Coast Concepts’ sites across the UK, including Hale, Alderley Edge, Liverpool, Leeds and Oxford, to the purchaser.
The Cairn Group is a privately-owned, family-run business which owns and operates 33 hotels, predominately on a freehold basis with assets close to £500 million. The Group also owns and operates 11 care homes in the North with a combined group turnover of £120 million, EBTIDA of £25 million and more than 3000 employees.
Naveen Handa, Director of the Cairn Group also recently led a consortium to become the new joint venture partners for London and UK Franchisees of Vapiano Restaurants.
Ben Woolrych, Joint Administrator and Partner at FRP, said: “We have been working with the East Coast Concepts team for several months, during incredibly challenging times for the hospitality sector as a whole. We’re therefore delighted to have been able to conclude a deal that not only secures the future of the group, but most importantly protects all existing jobs. Naveen and the team bring huge experience which we know will help drive the business towards its next stage of growth and we wish them all the best.”
John Hammond, Managing Director at East Coast Concepts, said: “Since opening our doors in 2012, every member of the business has worked hard to establish strong brands and create an experience that our guests love. We have significantly exceeded sales and profit targets since reopening in July following lockdown, whilst delivering an industry leading net promoter score, with 25% year-on-year growth in the final week in August, including the bank holiday weekend.
“This acquisition marks a significant milestone for the business and will enable us to embark on the next phase of growth, with an investor which really sees the value in the brands we have created. I’d like to thank everyone across the business and other key stakeholders for their ongoing support.”
Naveen Handa, Director at The Cairn Group, added: “We are delighted to have been able to secure the long-term future of East Coast Concepts, and its much-loved Neighbourhood and Victors brands, as well as the jobs of over 250 staff throughout the sites and head office. Moving forward we see great potential for premium, experiential and well differentiated brands and will be focused on supporting the existing management team, whilst investing in the brands and it’s people to help realise the exciting growth potential.”