Bay Restaurant Group
Encyclopedia
The Bay Restaurant Group is a hospitality company in the United Kingdom, specialising in restaurant and pub chains.
Robert Tchenguiz's R20 bought the company for £151m in November 2004. In June 2005 it bought the Slug and Lettuce, and Bar Med for £80m when the Surrey-based SFI Group went into administration. It also bought Yates's
for £202m, with many becoming Slug and Lettuce outlets. In February 2006 it sold the Forno Vivo and Santa Fe chains. In April 2007 it bought the La Tasca chain (58 pubs) for £123m.
, with most of the former company becoming the Bay Restaurant Group on 28 March 2008, financed by Kaupthing bank. In a few months, many Icelandic banks such as Kaupthing would spectacularly collapse in October 2008.
In February 2009, Mr Tchenguiz was sued by the Kampthing bank for an unpaid overdraft of £643m. Mr Tchenguiz was relieved of his involvement with the company by the banks to which he owed debts, through an offshore company called Oscatello based on the British Virgin Islands
. On 27 July 2009 it was bought by two banks, Commerzbank
of Germany, and Kaupthing Bank
of Iceland, in a move to recoup debts from Robert Tchenguiz. This was done via a debt-for-equity
swap, where Kaupthing became the major shareholder, and the company's debt was reduced by around £150m.
In May 2010 the company was put up for sale, with Tragus Ltd.
a potential buyer, for around £70m. In September 2010, it sold Ha Ha Bar and Grill (22 pubs) to Mitchells & Butlers
for £19.5m, which will see the disappearance of the brand, with 12 becoming All Bar One
.
Hogshead and Yates's are now owned by the Town & City Pub Company, which is based in the same building as the Bay Restaurant Group. This company was established on the same day by Mr Tchenguiz, and is the other part of the former Laurel Pub Company, and also owned by Kaupthing. The Town & City Pub Company bought the Slug and Lettuce chain (82 pubs) in February 2010, so is still based in the same building.
), close to junction 10a of the M1
and Luton Airport Parkway railway station
, opposite Lower Kidney Wood near Luton Hoo
.
History
The company originates from three former companies - Yates's, SFI Group and the Laurel Pub Company.Laurel Pub Company
The group has its origins in the Laurel Pub Company, which was owned by Robert and Vincent Tchenguiz, two Iranian businessmen. This originally owned the Hogshead pub chain. In May 2004, it sold 432 neighbourhood pubs for £654m to Greene King.Robert Tchenguiz's R20 bought the company for £151m in November 2004. In June 2005 it bought the Slug and Lettuce, and Bar Med for £80m when the Surrey-based SFI Group went into administration. It also bought Yates's
Yates's
Yates's is a pub chain, founded as Yates Wine Lodge in Oldham, in North West England by Peter and Simon Yates in 1884.-Business:There are over 70 Yates's pubs or bars in the United Kingdom however, there is no longer one in Oldham. The site of the original Yates' Wine Lodge is marked by a plaque on...
for £202m, with many becoming Slug and Lettuce outlets. In February 2006 it sold the Forno Vivo and Santa Fe chains. In April 2007 it bought the La Tasca chain (58 pubs) for £123m.
Financial difficulties
On 27 March 2008, the Laurel Pub Company went into administration; this was thought to be due to high rents. R20, Mr Tchenguiz's company, with its 378 pubs, bought the company back via pre-packaged insolvencyPre-packaged insolvency
Pre-packaged insolvency is a kind of bankruptcy procedure, where a restructure plan is agreed in advance to a company declaring its insolvency. In the United States pre-packs are often used in a Chapter 11 filing. In the United Kingdom, pre-packs have become popular since the Enterprise Act 2002,...
, with most of the former company becoming the Bay Restaurant Group on 28 March 2008, financed by Kaupthing bank. In a few months, many Icelandic banks such as Kaupthing would spectacularly collapse in October 2008.
In February 2009, Mr Tchenguiz was sued by the Kampthing bank for an unpaid overdraft of £643m. Mr Tchenguiz was relieved of his involvement with the company by the banks to which he owed debts, through an offshore company called Oscatello based on the British Virgin Islands
British Virgin Islands
The Virgin Islands, often called the British Virgin Islands , is a British overseas territory and overseas territory of the European Union, located in the Caribbean to the east of Puerto Rico. The islands make up part of the Virgin Islands archipelago, the remaining islands constituting the U.S...
. On 27 July 2009 it was bought by two banks, Commerzbank
Commerzbank
Commerzbank AG is the second-largest bank in Germany, after Deutsche Bank, headquartered in Frankfurt am Main.-Activities:Commerzbank is mainly active in commercial bank, retail banking and mortgaging. It suffered reversals in investment banking in early 2000s and scaled back its Securities unit...
of Germany, and Kaupthing Bank
Kaupthing Bank
Kaupthing Bank was an international Icelandic bank, headquartered in Reykjavík, Iceland. It was formed by the merger of Kaupthing and Búnaðarbanki Íslands in 2003 and was the largest bank in Iceland....
of Iceland, in a move to recoup debts from Robert Tchenguiz. This was done via a debt-for-equity
Debt restructuring
Debt restructuring is a process that allows a private or public company – or a sovereign entity – facing cash flow problems and financial distress, to reduce and renegotiate its delinquent debts in order to improve or restore liquidity and rehabilitate so that it can continue its...
swap, where Kaupthing became the major shareholder, and the company's debt was reduced by around £150m.
In May 2010 the company was put up for sale, with Tragus Ltd.
Tragus Ltd.
Tragus is a UK limited company which operates restaurants under the brands Cafe Rouge, Strada, and Bella Italia. The company is backed by the Blackstone Group private equity firm.-History:...
a potential buyer, for around £70m. In September 2010, it sold Ha Ha Bar and Grill (22 pubs) to Mitchells & Butlers
Mitchells & Butlers
Mitchells & Butlers plc runs around 2,000 managed pubs, bars and restaurants throughout the United Kingdom. The Company's headquarters is in Birmingham, England, United Kingdom...
for £19.5m, which will see the disappearance of the brand, with 12 becoming All Bar One
All Bar One
All Bar One is a chain of bars in the UK, owned and operated by Mitchells and Butlers plc which was part of the Six Continents group until 2003....
.
Hogshead and Yates's are now owned by the Town & City Pub Company, which is based in the same building as the Bay Restaurant Group. This company was established on the same day by Mr Tchenguiz, and is the other part of the former Laurel Pub Company, and also owned by Kaupthing. The Town & City Pub Company bought the Slug and Lettuce chain (82 pubs) in February 2010, so is still based in the same building.
Structure
The headquarters is situated in the south of Luton off the dual-carriageway Airport Way (A1081A1081 road
The A1081 road in Hertfordshire, England broadly follows and replaces the former route of the A6 south of Luton in Bedfordshire.It runs from Luton Airport south via Harpenden to St Albans and then bears southeast via London Colney to High Barnet, where it meets the A1000 .The route was renumbered...
), close to junction 10a of the M1
M1 motorway
The M1 is a north–south motorway in England primarily connecting London to Leeds, where it joins the A1 near Aberford. While the M1 is considered to be the first inter-urban motorway to be completed in the United Kingdom, the first road to be built to motorway standard in the country was the...
and Luton Airport Parkway railway station
Luton Airport Parkway railway station
| Luton Airport Parkway railway station is the railway station for London Luton Airport in Bedfordshire, England. The station opened in 1999 and is located south-east of Luton and west of the airport....
, opposite Lower Kidney Wood near Luton Hoo
Luton Hoo
Luton Hoo straddles the Hertfordshire and Bedfordshire borders between the towns of Harpenden and Luton. The unusual name "Hoo" is a Saxon word meaning the spur of a hill, and is more commonly associated with East Anglia.- Early History :...
.