M&B rebuffs private equity interest in brands
Managed operator Mitchells & Butlers has rebuffed preliminary approaches from a number of private equity firms keen to buy its Browns and All Bar One chains, according to The Times.
The approaches come after a strategy review overseen by new chairman John Lovering which suggested the company was minded to sell any brand that was not one of its six core drive brands.
But there was mixed message from Lovering at the M&B strategy presentation at the end of March.
He insisted that the company would take a pragmatic view of brands it would retain but added: "If somebody offers us a pound more than an asset is worth, we'll accept that offer." It was unclear at that stage of the strategy presentation whether its 14 Browns restaurants and 37 All Bar Ones were in the departure lounge.
Lovering has indicated that around 15% of the M&B estate — some 200 to 300 wet-led pubs could sold to fund expansion into retail parks and elsewhere.
It is thought the three main drink-based concepts at risk are student chain Scream, its Community Pubs and Town Pubs.
Lovering has insisted that he would like to see M&B's six drive brands — Harvester, Toby Carvery, Crown Carveries, Sizzling Pub Co, Premium Country Dining and Vintage Inns — double in size to around 1,900 pubs in less than five years.
