Food & Drink Group to be sold via administrators

Food & Drink Group (FDG), the Aim-listed bar group, is to be sold via a so-called "pre-packaged" administration, M&C Report understands.

The process, which it is thought will be concluded within a few days, will render the group's shares worthless.

The company and its advisers are thought to be in discussions with several possible buyers, with BDO Stoy Hayward standing by to handle the administration part of the sale.

One party is believed to be interested in acquiring all of the group's sites while several others are interested in taking most, but not all of FDG's 30 bars, some of which trade under the Jamies and Henry J Beans brands.

It is thought that the sale process will see all of the company's senior debt covered. Some of the subordinate debt will be paid but shareholders in the company will not receive anything.

Last month the company asked for its shares to be suspended while it continued talks with its banks and explored sale options.

Talks to execute a reverse takeover with 3D Entertainment, the privately-owned bar and club group, have been aborted.

It is thought that Agilo, the distressed debt specialist, and Novus Leisure, the Cognetas-backed bar group, are among those interested in the group.