SFI bars for sale?
Speculation over the assets of troubled bar operator SFI Group has resurfaced this week with reports that Bar Med and Slug & Lettuce are up for sale.
Reports suggest private equity groups are waiting to swoop for the two high street brands, thought to be worth a combined £70m.
The company, which is awaiting the results of an accounting review by Price Waterhouse Coopers, has already put 20 sites up for sale.
A host of agents including Colliers CRE, Davis Coffer-Lyons, Fleurets and FPD Savills, have been appointed to find buyers for the sites, which are located across the UK. The disposals include Slug & Lettuce units, two under the "Break for the Border" name, Litten Trees, and some traditional pubs.
The underperforming sites will be sold "if appropriate offers are made" a source told thePublican.com.
Earlier this week it was suggested the company would go a step further by selling two of its three main brands. A sale of Slug and Bar Med would leave SFI with Litten Tree, Bar Havana, a clutch of bars and pubs plus the lapdancing chain For Your Eyes Only.
SFI imploded after a rapid expansion plan saw the company's cash run dry. Accountants also found a £20m black hole in the group's books and the tough trading climate lead it to issue a profits warning before Christmas.
Tony Hill, the chairman and former chief executive, left in November, one month after the group scrapped its final dividend and revealed it was in breach of its banking covenants.
Related articles:
SFI troubles "apparent" last year (16 January 2003)
SFI lives to fight another day (7 January 2003)
SFI Group considers Bar Med sale (9 December 2002)
SFI bosses warned of cash flow crisis over a year ago (2 December 2002)
SFI 'ignored crisis warning' (25 November 2002)
SFI investors look to Hill for answers (19 November 2002)
Andrews: '£20m hole due to aggressive and lazy accounting' (13 November 2002)
SFI's Tony Hill leaves with nothing (13 November 2002)
Shares in SFI suspended (12 November 2002)
