Richoux looking to go private as it seeks more funding

(Sharecast News) - Restaurant owner Richoux said on Friday that it was looking to cancel its listing on AIM and go private as it seeks additional funding. The owner and operator of Richoux, Friendly Phil's, Villagio and The Broadwick restaurants said it will seek shareholder approval for the cancellation on AIM at a general meeting on 6 February.Following a review of the benefits and drawbacks of remaining on AIM, Richoux concluded that cancellation was the best option for the company and its shareholders. It argued that the cost, management time and legal and regulatory burden associated with maintaining its listing on AIM were "materially disproportionate" to the benefits."Whilst trading for the group remains in line with market expectations, the board has concluded that material growth in revenue is unlikely to be achieved in the longer term under its current business model, and may require additional funding in future, whether from existing shareholders or externally, to achieve material growth. "Following consultation, the board expects that the company is unlikely to receive material support from potential providers of capital or additional financing to support the company as it is currently structured. In order to put the company in a position whereby providers of finance may be more inclined to advance funds, the board believes that a material reduction in central overhead is required."Richoux said the cancellation would enable it to significantly cut administrative costs, allowing the group to continue trading as a private company, possibly without the requirement for external funding while it focusses on improving its estate.At 0910 GMT, the shares were down 14.3% to 6p.