Clapham House sells Bombay Bicycle Club to Tiffinbites owner
Clapham House Group, the owner of Gourmet Burger Kitchen, has sold its Bombay Bicycle Club (BBC) delivery and restaurant business to Gourmet Restaurants for £4.4m.
The three restaurants and 15 delivery kitchens that comprise BBC will join Gourmet Restaurants Indian operation, Tiffinbites, which has eight restaurants in London including sites in Canary Wharf and St Paul's.
Clapham House will use the cash it receives to reduce its debt and invest in its Gourmet Burger Kitchen, Real Greek and Tootsies brands.
BBC made a pre-tax loss of £484,000 for the year ending 30 March and has net assets worth £2.4m.
Paul Campbell, chief executive of Clapham House, said: "Whilst we are sad to see the Bombay Bicycle Club leave our portfolio, it is predominantly a home delivery business with a different pricing point and a longer period for return on capital than our other brands.
"We believe that at the current time it is appropriate to strengthen our balance sheet and focus resources on our pure restaurant businesses, Gourmet Burger Kitchen, Tootsies and the Real Greek."
Jamal Hirani, chief executive and founder of Tiffinbites, believed the acquisition made Gourmet Restaurant Group the largest Indian restaurant owner in the UK.
"Our company mission is to give diners the opportunity to experience authentic Indian food of the best quality at whatever their price point, and the acquisition completes the group's offering and ensures our presence in all areas of the Indian dining market."
Clapham House Group's Bombay Bicycle Club up for sale? >>
Clapham House arrests slide at Tootsies >>
Indian restaurant chain switches to free-range chickens after TV plea >>
By Christopher Walton
E-mail your comments to Christopher Walton here.