Takeover moves for ailing Tootsies

Struggling burger chain Tootsies' future is under the spotlight again after owner Urban Dining admitted it had received several takeover approaches.

Urban Dining's management last week revealed it had received several indicative offers to acquire the company, but didn't reveal any names.

"A small number of these interested parties will be invited to participate in more detailed discussions," the company said in a statement.

The bids follow the chain's announcement in November that it would carry out a strategic review and that it was calling time on its original strategy of being a "consolidator in the restaurant industry".

Rumours that founder and Urban Dining board member Andrew Bonnell was considering buying back the company have receded.

Other names linked to the deal include Strada, Giraffe and Clapham House Group (CHG). Giraffe co-founder Juliette Joffe declined to comment, while CHG founder and Urban Dining shareholder David Page said the proposition didn't fill him with "enormous enthusiasm".

Greg Feehley, head of leisure research at Altium Securities, said price would be key. "Urban Dining paid too much for the group on the way in so I expect we will see a lower price on the way out. It's not a bad brand but it's lost its way."

Property agent Trevor Shelley of Shelly Sandzer said Tootsies offered an unusual property portfolio to potential buyers. "Not many groups have the mix of high-street and concession-style sites that Tootsies has. We may see offers for different parts of the chain," he said.

Urban Dining, which bought the chain of 30 burger and grill restaurants for £30.6m in 2004, declined to comment further.

By Jessica Gunn