Deliveroo secures $180m of new funding ahead of proposed IPO: Deliveroo has secured $180m (£132m) in new funding, pushing its valuation to more than $7bn (£5.1bn) ahead of its long-anticipated float. The delivery firm’s latest funding round was led by existing investors Durable Capital Partners and Fidelity Management & Research Company. It comes after the company announced plans to expand into about 100 new towns and cities across the UK in 2021. The company said the new funding would contribute to expanding its Editions delivery-only kitchen sites worldwide and its on-demand grocery service. It also plans to extend its Plus subscription service to “new geographies” and offer its Signature service to restaurants, which enables customers to order for delivery via businesses’ own websites. The company said “new initiatives” would also support its delivery riders. Will Shu, Deliveroo’s founder and chief executive, said: “At Deliveroo, we are always focused on developing the best proposition for consumers, riders and restaurants. This investment will help us to continue to innovate by developing new tech tools to support restaurants, to provide riders with more work and to extend choice for customers, bringing them the food they love from more restaurants than ever before. We are really pleased our shareholders see the opportunity and growth potential ahead of us.” Last week, Sky News reported Deliveroo had hired a quartet of investment banks to help it serve up what could be London’s biggest stock market flotation of 2021. It has appointed Bank of America Merrill Lynch, Citi, Jefferies and Numis to work on the listing that market sources expect to value it at well over £5bn. The four investment banks will work underneath Goldman Sachs and JP Morgan on Deliveroo’s initial public offering (IPO), which is expected to be launched in or around April.
Blackstone in talks to take stake in Butlin’s owner: Blackstone, the world’s biggest private equity firm, is in talks to buy a majority stake in the leisure company behind Butlin’s holiday parks in a deal that will value the business at about £3bn. According to The Times, Blackstone is understood to be holding exclusive discussions with Bourne Leisure, which also runs Warner Leisure Hotels and Haven, the holiday operator. The low-profile Cook, Allen and Harris families, who own the business, will retain a significant stake after the sale. Other parties said to have been interested in Bourne include Cove Communities, an American holiday parks company, and Clayton Dubilier & Rice, the New York-based private equity firm. Bourne is Britain’s biggest leisure business, employing 14,000 staff at peak seasonal periods and attracting more than four million families a year before covid-19. Blackstone’s investment will help to secure thousands of jobs – many of them in deprived areas – and comes after staycations surged in popularity last summer because of foreign travel restrictions.
Greene King brings back team member support fund: Brewer and retailer Greene King is launching its second covid emergency support fund later this month to help its team members most in need during the third lockdown. It follows the first fund that ran from March to June last year, when Greene King donated £650,000 in grants for team members to access essential food and retail vouchers. The funds have, once again, been raised from a combination of voluntary salary sacrifices from the executive board and leadership team at Greene King and a company donation. Chief executive Nick Mackenzie said: “It’s a really tough start to 2021, back into lockdown and all of our pubs closed. Most of our team members are furloughed, and we know how severely this is affecting some of our people financially, so we wanted to bring back the Team Member Support Fund to help the members of our team who need it most at this really difficult time. Our industry has been one of the hardest hit by the pandemic, and when we have been able to open our pubs, our brilliant team members have eagerly welcomed our customers back, safely. But right now, they need our help. One of our key objectives since the start of the covid crisis is to, as far as possible, protect our employees and leased and tenanted partners from the worst impact of it. We’re a family and we want to support each other.” The fund will, once again, be managed independently by Licensed Trade Charity.
Tasty draws down £1.25m loan, continues negotiations with landlords: Wildwood operator Tasty has drawn down the £1.25m loan it secured in September and is currently operating 38 sites for takeaway and delivery. The company stated: “As previously announced, the company has now been successful in achieving rent reductions and lease concessions on more than half of the estate. The company is continuing consensual negotiations with landlords and other creditors in respect of outstanding rents and, given the current third lockdown, now anticipates this process will continue into at least March. The company will again be relying on government support for employees’ pay and VAT, and business rates holidays and grants, where available. The bank facility secured in order to strengthen the company’s balance sheet and provide additional working capital support as detailed in the announcement, dated 30 September 2020, has now been drawn down by the company.”
Neat Burger secures Victoria site: Neat Burger, the Lewis Hamilton-backed, plant-based concept, has secured its fifth site in the UK, in London’s Victoria. Propel understands the brand has taken the unit next door to Pizza Pilgrims in Buckingham Palace Road for an opening in March. Earlier this month, Propel revealed the company had exchanged on a split of the former PizzaExpress in Cabot Place, Canary Wharf, for an opening in April, as it looks to have ten sites open in the UK before the end of this year. The company, which opened its third London site in Soho’s Old Compton Street at the end of last year, is aiming to open further sites both within London and also outside including in Brighton, Manchester, Liverpool, major airports and train stations, and is thought to have further sites lined up in central London, the City and a major shopping scheme. Marc Rogers at MKR Property has been appointed as sole agent for Neat Burger, to aid in the expansion and securing key locations. The brand opened its first site in September 2019, just off Regent Street in London. It operates Deliveroo Edition sites in Battersea and Whitechapel.
Unsecured creditors of Sayers the Bakers set to receive dividend of 3.6p in the pound: Unsecured creditors of north west-based independent retail bakery Sayers the Bakers and sister brand Poundbakery, which went into administration in 2019 and was subsequently bought, are set to receive a dividend of 3.6p in the pound. An administrator’s progress report by Sarah O’Toole and Jason Bell, of Grant Thornton, also revealed secured creditor Montague, which is owed almost £4.7m, has yet to receive a payment and there is “likely” to be a shortfall. Estimated preferential claims are £101,266, although this figure is yet to be finalised. This is “comprised largely of unpaid pension contributions and includes amounts in respect of employees who transferred with the sale of the business”. The administrator said it expected the full amount to be paid within the next six months. As previously reported, Sayers the Bakers went into administration at the end of 2019 after four years of continued losses. Karen Wood acquired the business’ assets and formed a new company, Sayers and Poundbakery, which is run by the former management team led by Mark James and David Silvester. Operating since 1912, the business employed more than 1,500 people at 167 Sayers, Poundbakery and Poundcafe stores and its manufacturing and distribution centres in Bolton and generated turnover of £50m. The new company took on the bakery and distribution centre in Bolton and the majority of bakeries in northern England, North Wales and Yorkshire. The shops continue to be branded as Sayers the Bakers and Poundbakery.
Elliott steps down as Five Guys group finance director: Holly Elliott has stepped down as group finance director of Five Guys, the fast-growing burger concept, Propel understands. Elliott joined the burger brand in the summer of 2016, when the company was gearing up to open its 15th site in the UK and make its debut in France. Before joining Five Guys, she spent a year as chief financial officer at Nails Inc UK and before that was finance director for Caffe Nero UK for four years. Propel revealed last week Five Guys had further strengthened its 2021 UK openings pipeline, with the addition of three leisure park-based sites. The circa 100-strong brand has secured the former Frankie & Benny’s sites in Crest Road, High Wycombe, and at the Gate Leisure Park, Chichester, for openings later this year. The company has also taken on the ex-Pizza Hut site at Stevenage Leisure Park, Hertfordshire. Last month, Propel revealed Five Guys had secured a site in London’s Brixton. It secured a newly developed site near Brixton’s Atlantic Road, and hopes to be on-site this month. It has also secured a site at the McArthurGlen Designer Outlet West Midlands, which is due to open in the first quarter of this year, alongside Starbucks and Wagamama. As previously reported, it will also open in the Edinburgh St James development this summer.
Sherrington steps down as Drake & Morgan chief financial officer: James Sherrington has stepped down as chief financial officer at Drake & Morgan, after three years in the role and six years with the Bowmark Capital-backed, London-based bar operator, Propel has learned. Sherrington joined the business as finance director in 2014, before being promoted to chief financial officer of the business in 2017. Sherrington joined Drake & Morgan from Caprice Holdings and the Birley Group where he was the finance director, reporting directly to Richard Caring. Propel understands that Sherrington has been replaced by David King, former head of finance at Fuller’s and Vue Entertainment, and ex-finance director of Deep Blue Restaurants.
Sugoi JPN opens third London site for Arepita Sliders concept, in Wimbledon:Japanese and Latin American fusion concept Sugoi JPN has opened a third site for its Arepita Sliders concept, in Wimbledon, Propel has learned. The outlet is located in The Long Shop in Watermill Way and also offers delivery via Deliveroo within a 2.5-mile radius. The opening marks the latest step in the ambition to launch 20 sites for Arepita Sliders across London during the coming year, with a target of 50 overall. The sites offer arepa – pan-fried corn buns that originated in the area of South America that is now Venezuela and Columbia. The menu works by offering arepa and separate fillings, including pulled beef, black bean, pico de gallo (tomatoes, coriander, red onion and lemon juice) and reina pepiada (a combination of chicken, avocado, red onion, mayo and coriander), which customers can “FIY – fill it yourself”. Arepita Sliders also claimed its arepa help meet the needs vegans and gluten-free customers and help tackle food waste by being fine for consumption the following day by toasting the arepa and chilling the contents ready for reheating.
Tim Hortons launches online UK retail store: Canadian quick service restaurant brand Tim Hortons has launched an online UK retail store. The brand, which has 25 sites across Britain, has brought its selection of coffee, French vanilla and hot chocolate to be enjoyed at home through a partnership with Amazon Shop. There are also ceramic mugs, travel flasks and reusable straws available to additions to order. The full range of products and merchandise is also available to purchase directly in Tim Hortons’ UK restaurants. Kevin Hydes, chief commercial officer of Tim Hortons UK & Ireland, said: “2020 showed us the extreme passion and dedication of our fans with hundreds getting in touch to find out where they could purchase their favourite items to enjoy at home while our restaurants were closed or travel was limited. We hope the huge community of Canadians and Tim Hortons fans living in the UK are able to find some comfort in a taste of Canada served in their own homes.”
Fledgling leisure brand Bike & Boot Inns: Bike & Boot, the leisure brand from former Devonshire Hotels & Restaurants managing director Simon Rhatigan and wine merchant and restaurateur Simon Kershaw, has announced plans to open a new site in the Peak District in March 2022. Plans for the brand’s second hotel have been approved and will see a new property open in the Hope Valley, Peak District’s National Park. It will follow the opening of the 65-bedroom Bike & Boot in Scarborough, which launched in July last year and achieved occupancy rates of 95% during the peak of the summer. Rhatigan and Kershaw said they had a further three sites in various stages of planning across the north of England, the Midlands, Wales and Scotland. Speaking on the news of the brand’s second hotel, they said: “We are thrilled with the location of the next Bike & Boot hotel; it’s another site that hugely complements the ethos of the brand. With the strong demand for staycations and the success of our first hotel in Scarborough, we feel confident that our second site will be well received. We can’t wait to welcome guests.”