Le Pain Quotidien's UK business has been sold as part of a pre-pack administration to BrunchCo, which is also set to acquire the brand's Belgian and French assets.
Rob Croxen and Jonny Marston of Alvarez & Marsal were appointed joint administrators to Le Pain Quotidien (LPQ) on 11 June. Immediately on appointment, a sale of the UK business and assets for 15 sites was entered into with BrunchCo.
However, LPQ's UK head office and 11 of its sites have been closed with immediate effect, which has resulted in 200 roles being made redundant. The remaining 333 staff have been transferred over to BrunchCo.
BrunchCo, a subsidiary of BrunchCo 21 SA, will be holding talks with LPQ's remaining landlords regarding the structure of its lease agreements and the future of the remaining sites.
Belgian private equity investor group M80 have recently signed to become the future majority shareholders of BrunchCo parent company BrunchCo 21 SA.
A further announcement is expected within the next few days. The new owner intends to make significant investments in LPQ to create a sustainable future for the UK business.
Rob Croxen, joint administrator and managing director at Alvarez & Marsal, said: "Like many operators in the hospitality sector, LPQ has struggled with tough market conditions for a number of years. This situation has been exacerbated by the coronavirus outbreak. This acquisition secures the brand's future in the UK, and we hope to conclude the restructuring process within the next few days. We appreciate the support of LPQ's employees at this difficult time."