SIR Terence Conran is poised to announce that he is selling a 49 per cent stake in his upmarket restaurant business to a management team backed by Bank of Scotland, The Times has learnt.
The deal, which is likely to be announced in the middle of next week, is believed to value the design entrepreneur’s Conran Restaurants business at up to £50 million.
A spokesman for Conran Holdings, which includes the Conran Shop chain, said: “We cannot comment on speculation, but we hope to make an announcement shortly.”
It is understood that, under the terms of the proposed deal, Conran Holdings would retain 51 per cent of the restaurant operation, with Bank of Scotland taking a stake of almost 20 per cent and the balance going to managament, led by Des Gunewardena, chief executive of Conran Holdings. Bank of Scotland is also supplying debt funding.
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Mr Gunewardena, a Sri Lankan-born accountant, already has a 7 per cent stake in Conran Holdings.
Conran Restaurants, which was founded in 1991, has 21 restaurants, including London landmarks such as Quaglino’s, Le Pont de la Tour, Sauterelle and Le Coq d’Argent. It also runs the Alcazar in Paris and Guastavino’s in New York, while new ventures are due to open in Copenhagen, Tokyo and London.
In the year to March 31, Conran Restaurants lifted operating profits by 18 per cent to £4 million, from sales up 2.7 per cent to £56.3 million. Conran Holdings recently sold its 50 per cent stake in the Great Eastern Hotel in the City of London, thereby losing control of four restaurants and five bars.