Independent UK: Summer is cancelled as leisure and food sector feels credit crunch chill

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Summer is cancelled as leisure and food sector feels credit crunch chill

The EAT sandwich chain, Prezzo pizza restaurants and games supplier HB Leisure are among those forced to rethink their strategies

By Simon Evans and Mark Leftly
Sunday, 31 August 2008


The husband and wife duo Niall and Faith MacArthur, the founders of the lunchtime food chain EAT, are set to miss out on a £75m bonanza following the decision to scrap the proposed sale of the 92-shop group.

In a disastrous summer for the leisure and food sector, it is also believed that the proposed management buyout of the pizza chain Prezzo could fail, while the amusement arcade chain HB Leisure has abandoned a sale of a stake in its business.

Leon, the London chain of healthy fast-food restaurants is also rumoured to be struggling, though it continues to expand.

The abandonment of the sale of EAT comes months after the group, part owned by the private equity firm Penta Capital, was put up for sale with a price tag of £120m-£150m, following a review by its adviser PricewaterhouseCoopers.

But sources close to the group said: "It just doesn't make any sense to sell a business like EAT at the moment. The valuations are just two low. That's not to say it won't be sold in the future when things recover." ......(more)

The complete piece is at: http://www.independent.co.uk/news/business/news/summer-is-cancelled-as-leisure-and-food-sector-feels-credit-crunch-chill-913620.html