A-Z wins Close Bros finance for expansion
London-based group A-Z, whose restaurants include L'Oranger, Zafferano's and Aubergine, has secured a £5m investment from financiers Close Brothers Growth Capital. It will use the money to fund expansion.
The investment could be a precursor to a flotation on the stock market for A-Z and it follows a similar venture capital investment last week by merchant bank Aberdeen Murray Johnson in chef Paul Heathcote's restaurants (Caterer, 24 May, page 4).
A-Z recently opened the Spiga restaurant in Chelsea and is to open two more restaurants in the next four months: Prezzemolo in Wandsworth and Memories of China in Chelsea. The group plans to open a further eight restaurants in the next two years, almost doubling in size.
Close Brothers is providing a medium-term loan of £2.5m to pay off existing debt, a further £1.5m to fund expansion, plus another £1m of finance.
Close will buy out A-Z director Franco Zanellato, a director and 25% shareholder. Bill Crossan, managing director of Close Brothers Growth Capital, joins the board of A-Z as a non-executive director.
"This is a perfect investment for us," said Crossan. "We are backing London's most up-and-coming restaurant group and we think there are great opportunities for growth."
A-Z currently operates 11 restaurants around London. The company employs more than 350 staff.
by David Shrimpton
