Sports Café/Candu businesses to be re-named Yellowhammer

A new group called Yellowhammer Bars has been formed to operate the Sports Café and Candu Entertainment businesses.

The move follows the acquisition of the respective groups by Agilo, a London-based fund that invests in distressed companies and special situations.

The business is to be led jointly by James Spragg, the former commercial director of Novus Leisure who was recruited by Agilo to run Sports Café, and by Tim Roberts, the former chief executive of Candu.

Spragg and Roberts will both hold the title of executive director. The executive team also includes Martin Brayshaw, a turnaround specialist, who has assumed the position of finance director.

The business was formed earlier this year when Agilo bought the majority of the assets previously operated by the eponymous divisions.

Yellowhammer now comprises five Sports Café venues and 23 Candu bars and clubs. Spragg said that a turnaround of the Sports Café brand was underway following an investment programme at all five sites, with like-for-like sales now flat - up from declines of 20% when the bars were acquired.

He said: "The business was significantly underinvested and it's really been a matter of taking the offer back to being a premium sports bar."​

Spragg said that Yellowhammer was undertaking a similar restorative investment programme at its Candu sites.

He also intimated that further acquisitions were likely and that Agilo was looking at other opportunities in the sector.

Agilo was founded by Jason Granite, a debt specialist who previously worked within Deutsche Bank's Distressed Products Group, and Milos Brajovic, who previously co-founded hedge fund Asteri Capital.

Agilo's advisory panel includes Alan Lovell, the turnaround specialist, Ken Mactavish, the former Barclays Capital executive, and Michael Portilo, the former MP and Conservative cabinet minister.

Sports Café, which was founded by entrepreneur Bill Balkou, was placed in administration in January after its banks withdrew their support. Agilo acquired five of its eight sites.

Candu was placed in administration in March. It was formed via a Close

Brothers-backed management buyout from Luminar for £28m in 2005.

At the time of the deal the business comprised almost 50 sites, although Agilo bought only about 30 sites.

Yellowhammer is the name of a British bird, and is also used in a well-known chant by the University of Alabama's American football team.