The British burger chain Byron could be sold for as little as £25 million, Sky News has reported. It follows news last month that the 74-site group was contemplating a sale, in what could be the first major casual dining casualty in the industry post-Brexit.
Byron, with then only 34 sites, was purchased for £100 million by the investment company, Hutton Collins in 2013. It is said that the burger chain now employs 1,800 people across a portfolio that is over double the size when that acquisition took place.
If it were sold for the reported figure of £25 million, it would mark a dramatic devaluation in four years. It is reported that R Capital, “which specialises in buying troubled businesses, is one of several suitors to have held talks with Byron's owners and management in recent weeks.”
Sky News also say that “Information distributed to potential bidders...indicates that 13 of its sites are loss-making or marginal, and fall into a category entitled 'exit immediately'.
“A further dozen restaurants are marked for review and could be exited by a new owner "with or without a premium", according to Byron.”
Earlier this year the company closed four under-performing sites and last month Byron’s investors hired management firm KPMG to undertake a strategic review and assess the short and medium term options for the business.
Byron have not commented on the reports.