LONDON (Alliance News) - Richoux Group PLC on Monday agreed to sell the lease to its Richoux Picadilly restaurant for GBP500,000 in cash.
The company expects the transaction to complete before March 21 next year after obtaining the the landlord's licence. Richoux said it will use the proceeds from the sale for ongoing working capital.
The operator of Richoux, Friendly Phil's, Villagio and The Broadwick restaurants said Richoux Piccadilly generated a pretax loss of GBP10,000 in the 53 weeks to the end of 2017, with revenue of GBP1.1 million.
Richoux also said it has entered into conditional agreements to assign the leases to its Friendly Phil's Braintree and Richoux Gloucester Road restaurants for GBP25,000 and GBP100,000 in cash, respectively.
"Following the strategic review of our estate, we have entered into agreements, subject to satisfaction of certain conditions, to sell the leases to our Piccadilly, Braintree and Gloucester Road restaurants which, if successful, will enable us to focus on the remaining portfolio," said Chief Executive Jonathan Kaye.
Richoux shares were untraded on Monday, last quoted at 6.40 pence each.
