Casual Dining Group receives £30m refinancing package

By Stefan Chomka contact

- Last updated on GMT

Restaurant chain Casual Dining Group receives £30m refinancing package

Related tags: Restaurant, Casual dining, Casual dining group

Casual Dining Group, (CDG) which operates restaurant brands Las Iguanas, Café Rouge and Bella Italia, has announced a new cash investment of £30m as part of a refinancing of the group.

CDG says the capital injection provides a long-term capital structure for the group, strengthens the balance sheet, and positions the company for growth in a ‘challenging’ environment.

It has been led by KKR, and with the support of shareholders including funds managed by affiliates of Apollo Global Management, LLC and Pemberton Asset Management,
KKR and Apollo have been investors in CDG since 2015, providing debt and equity funding, and will remain so going forward.

CDG’s chief executive Steve Richards says the deal gives the company “a strong foundation to continue to invest in our brands and take advantage of opportunities in the sector as they arise”.

Earlier this year CDG, which operates around 300 sites across the country, posted a sharp increase in losses, which rose 18% to £60m in the year to May 2017 despite a 2.2% rise in like-for-like sales. The company cited a ‘significant’ rise in costs and challenging conditions due to falling consumer confidence levels as one of the reasons for its performance.

In its most recent statement, however, it says it is performing ahead of the market, reporting total sales up nearly 5% and like-for-like sales up 2.3% in the past 14 weeks and a double digit profit uplift in the period.

CDG has opened seven new concession sites in airports and hotels since the start of the year with a schedule of UK-owned and international franchise new openings in the pipeline. The company also recently entered the hotel F&B market, and has signed UK franchise agreements to operate restaurants at two UK hotels.

The deals, which are both with London Town Group, will see CDG create and operate a bespoke premium offering at the Hotel Indigo, London Paddington, as well as introduce a Bella Italia at the newly built Holiday Inn, in Wigstone. CDG has also signed separate management contracts to look after operations at both sites.

Related topics: Business

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