AIM-listed Food and Drink Company (FDG), behind Henry J Beans and Jamies, faces the prospect of a distressed sale and could well break its banking covenants, IFR Buyouts Europe has learnt.
“A number of parties have been looking at the company in terms of a distressed sale,” an informed source said.
Business advisory firm BDO Stoy Hayward is reportedly ready to act as administrator for FDG.
One potential buyer for the Henry J Beans owner is believed to be distressed fund specialist Agilo, which is based in the Cayman Islands, and bought five of the Sports Cafe’s bars when the group went into administration at the beginning of the year.
However, Novus Leisure, which was first mooted as a bidder for FDG, is understood not to be running the slide rule over the company. Novus runs premium bars such as the City’s Abacus and is backed by European private equity firm Cognetas.
Trading in FDG’s shares remained suspended in July after it revealed in June that it was in talks to secure additional financing to keep it above water.