Thu, 03 Sep 2020 | BUSINESS SALE
Manchester-based bar and restaurant group East Coast Concepts has been acquired in a pre-pack sale by an investment group headed by Cairn Group director Naveen Handa.
East Coast Concepts employs around 250 staff and has five sites in Hale, Alderley Edge, Leeds, Liverpool and Oxford, which operate under its Victors and Neighbourhood brands. The acquisition will see all sites continue trading.
Over recent months, the group had been working with advisory firm FRP as it looked to survive the impact of the COVID-19 lockdown and safeguard its long-term future. FRP’s Ben Woolrych and Anthony Collier were appointed as joint administrators on September 1, before completing the pre-pack sale of East Coast Concepts and its assets to Mr Handa’s investment group.
East Coast Concepts Managing Director John Hammond commented: “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 our doors in July following lockdown whilst delivering an industry leading net promoter score, with 25 per cent 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.”
Mr Handa 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 its people to help realise the exciting growth potential.”
In its most recent accounts, to the year ended June 23 2019, East Coast Concepts reported turnover of £7.5 million, down from £8.5 a year earlier, with gross profit of £5.1 million, down from £5.9 million the year prior.
The fall in turnover was attributed to the closure of the company’s Neighbourhood Manchester site after a “serious incident” on the premises resulted in the site premises licence being revoked in April 2019. The group reported a loss for the year of £780,100.
At the time, its fixed assets were valued at close to £3.5 million, down from £4.6 million in 2018, while current assets stood at £3.4 million, with total assets less liabilities amounting to £4.59 million.
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