RSS feedsStruggling roadside restaurant chain Little Chef could be sold for about £10m, leaving 4,000 jobs in the balance.
Yesterday it was rumoured that the firm was in takeover talks with Israeli property group Arazim, and turnaround specialist RCapital. It emerged the chain could be bought as part of a rescue deal, possibly leading to an initial closure of 40 of its 234 outlets.
Little Chef is one of Britain’s best-known brands and employs almost 4,000 people at 234 outlets, but is said to be losing up to £3m each year. Recent reports have stated that its parent company, the People's Restaurant Group (PRG) was on the brink of administration.
PRG suffered problems after a £60.3m sale and leaseback deal of 65 sites in February with Arazim. Trading picked up after the transaction, but not as quickly as PRG had expected.
Further reading:
KPMG cooking up refinancing plan for Little Chef
