Madisons sold for £2.3m

Madisons Coffee has sold its 27 coffee bar outlets to retail catering specialist Out of Town Group for up to £2.3m in cash.

Madisons said it planned to concentrate on its Richoux restaurants business in the UK, franchising the name overseas and "through possible opportunities to selectively acquire additional restaurant outlets."

The company said it also planned to look at "other suitable branded restaurant acquisition opportunities in the casual dining market."

The coffee bars turned over £6.45m in the year to 29 June and pre-tax profits of £70,000.

Out of Town was the subject of a management buy-in led by Colin Mayes, previously chief executive of Old English Inns, in December 2002. The buy-in was backed by venture capital firm Penta Capital.

Following the acquisition Out of Town will have 109 trading outlets in 46 shopping centres across England and Wales. It will shortly be opening its first outlets in Scotland.

Mayes said: "We are acquiring a core coffee brand, extending our network into the south-west of England and further consolidating our position within the shopping centre market.

Fraser Grimbleby will join Out of Town as operations director from Frankie & Benny's in January 2004.

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