Queensborough to go private

Stock market-listed leisure company Queensborough Holdings is being taken private by two of its major shareholders in a £23m deal.

The company's independent directors have agreed to a cash offer from Kevin Leech and David Kirch, who between them already hold 59.7% of the company.

Queensborough's announcement came as it unveiled a £6.9m pre-tax loss for the year to 31 January.

The company runs the Romano's Macaroni Grill restaurant in Basildon, Essex, where sales during the year "exceeded expectations". But the restaurant division as a whole lost money, partly because of the £538,000 cost of management redundancies.

Its three Fresco restaurants, in Bristol, Nottingham and Manchester, have been closed and put up for sale after performing "significantly below expectations". Romano's will continue to operate under the terms of the joint venture agreement with the brand's American owner, Brinker.

At Queensborough's Burstin hotel in Folkestone, Kent, profits fell because of a "downturn in the coach tour market during November, December and January." But a refurbishment carried out during the year had "significantly improved the level of customer satisfaction".

Last year, Queensborough tried to buy 46 Deep Pan Pizza restaurants from City Centre Restaurants. But the deal fell through after a separate sale-and-leaseback deal on the Burstin hotel fell through. A legal claim for damages against the supposed purchasers is ongoing.

Queensborough's joint executive chairman, Michael Guthrie, resigned last month. The company now wants to concentrate on its caravan parks business.