Paramount Restaurants to restructure after private equity pull-out

20 July 2009 by
Paramount Restaurants to restructure after private equity pull-out

Paramount Restaurants has announced it will be restructuring its business, after private equity owner Silverfleet Capital sold its entire interest in the company to the business' existing lenders.

The Royal Bank of Scotland, HSBC, Barclays and Sankaty bought Silverfleet's interest for an undisclosed sum, thought to be a nominal fee. As part of deal, the banks have written off an estimated £55m of the company's £120m total debt and taken equity in return.

Paramount's chief executive Mark Phillips said: "The financial restructuring means that the new senior management team, who have been appointed over the past 12 months, can now focus all their efforts on the upgrade programme which they commenced last year."

He added: "Paramount is a great business with great brands, great assets and great people. The restructuring, together with the injection of new money, will provide stability for the group and enable it to continue to invest in its brands and assets. This is a business with real potential, and the restructuring gives us the opportunity to fulfil this potential."

Mark Sheehan, managing director of Coffer Corporate Leisure said: "This is another example of an over-leveraged private equity-backed leisure business which is fundamentally sound. Along with Novus and Barracuda Group which had similar experiences] a reduction in debt will help the business survive and grow in the long term."

The upgrade programme includes: the refurbishment of the London estate; targeted site/brand repositioning and implementation of further systems and processes to improve controls and profitability.

- A big test for private equity >>

Sales at major pub and restaurant chains holding up >>

Paramount Restaurants to help staff climb the career ladder >>

By Emily Manson

E-mail your comments to Emily Manson here. jobs
Looking for a new job? Find your next restaurant job here with jobs

[Blogs on]( Catch up with more news and gossip on all Caterer's blogs
[Newsletters For the latest hospitality news, sign up for our e-mail newsletters.
The Caterer Breakfast Briefing Email

Start the working day with The Caterer’s free breakfast briefing email

Sign Up and manage your preferences below

Check mark icon
Thank you

You have successfully signed up for the Caterer Breakfast Briefing Email and will hear from us soon!

Jacobs Media Group is honoured to be the recipient of the 2020 Queen's Award for Enterprise.

The highest official awards for UK businesses since being established by royal warrant in 1965. Read more.


Ad Blocker detected

We have noticed you are using an adblocker and – although we support freedom of choice – we would like to ask you to enable ads on our site. They are an important revenue source which supports free access of our website's content, especially during the COVID-19 crisis.

trade tracker pixel tracking