Stonegate Pub Co merger talks 'progressing well'
Merger talks between representatives of Stonegate Pub Company and Town & City Pub Company (T&CPC) could be successfully concluded within a matter of months, according to T&CPC commercial director Suzanne Baker.
"The bigger picture with Town & City is the aim of merging it with Stonegate [formed following the sale of 333 Mitchells & Butlers (M&B) pubs to private equity firm TDR Capital]. Talks to this end are going well," she said.
Baker said the merger situation could be resolved in months.
She was speaking as it was announced that La Tasca, the 67-strong tapas bar chain and Bay Restaurant Group's (BRG) remaining restaurant brand would become a standalone business at the end of next month, at which point BRG would cease to exist.
Baker has combined her T&CPC role with that of interim chief executive at BRG, its sister company, for the past year following the departure of its then-boss Paul Symonds.
At the end of February Baker will focus solely on her role as T&CPC's commercial director, reporting to chief executive Toby Smith.
She said the past year had been "fantastically challenging, but my heart and passion have always been in the commercial function".
She added the aim had always been to hire a full time boss for La Tasca once it became apparent last year that it would not be sold.
The end of next month, which is BRG's year end, sees the arrival of Simon Wilkinson as chief executive of La Tasca.
He joins from Kuwait-owned Kout Food Group, whose restaurant brands include the Maison Blanc bakery and cafe chain created by chef Raymond Blanc.
In a statement BRG's chairman David Myers said: "I would like to take this opportunity to thank Suzanne Baker for her efforts in steering La Tasca through considerable change over the last 12 months and to welcome Simon Wilkinson to the Board."
The tapas bar chain was one of three restaurant/bar brands operated by BRG: ha ha bar and grill, which was sold last September to M&B, and Slug & Lettuce, which transferred to Town & City last February.
Following the sale of ha ha to M&B and the subsequent decision not to sell La Tasca, investors Icelandic bank Kaupthing and Germany's Commerzbank agreed to a two year investment programme worth £3.6m in the tapas chain, which had begun to look "dated", said Baker.
Both T&CPC and BRG emerged from the pre-pack administration of Laurel Pub Company which took place three years ago.
Ian Payne resigned as chairman of both companies after private equity firm TDR Capital bought 333 mainly wet-led pubs last year, setting up Stonegate Pub Company to run them.
Payne has often stated his goal of merging the Stonegate and T&CPC; this now looks like being a step closer.
