Appointment of Administrators & Sale of Business

    RNS Number : 8071A
  Food & Drink Group (The) PLC
  06 August 2008
   


    The Food and Drink Group plc 
    ("FDG" or "the Group") 
    Appointment of Administrators and sale of business 

    FDG announces the sale of 17 bars following the appointment of business restructuring partners, Shay Bannon and David Gilbert of BDO
Stoy Hayward LLP, as Joint Administrators of the Company on 6 August 2008. 
    The bars have been sold to Mainpaint Ltd, a company backed by NBGI Private Equity, for a consideration which is not expected to result
in any return to shareholders. 
    The sale follows the Group obtaining additional financing in January 2008 and subsequently exploring a variety of strategic options over
the past six months including raising new equity, reversing another business into the Group and a sale of the business, including the
possibility of an offer to buy the Group's shares. Despite the support of the Group's principal shareholders and bankers, the deteriorating
market conditions have resulted in the Group being unable to achieve a transaction to continue the Group's operations. 
    The Board of The Food & Drink Group, commented: 

    "The Group has been facing the most challenging economic conditions for decades which has reduced operational performance and has
restricted investment in the Group's brands. These conditions have prevented the Group raising the further financing it needed. The sale of
the business has secured the jobs of 300 of the Group's employees." 
    Shay Bannon, Joint Administrator, commented: 
    "A reduction in the amount of disposable income as a result of the current economic climate has played a role in the Group's
difficulties.  Securing a going concern sale of the business, which will protect 300 jobs, is positive news for the employees and the
industry as a whole." 
    For the avoidance of doubt, the Group is no longer in an 'offer period' for the purposes of the City Code on Takeovers and Mergers 
    6 August 2008 
    ENQUIRIES: 
  College Hill                                Tel: 020 7457 2020
 Justine Warren 
 KBC Peel Hunt                                Tel: 020 7418 8900
 Capel Irwin/Matt Goode 
 BDO Stoy Hayward            Tel: 0161 833 8324 or 07800 682841 
 Siobhan Murphy, PR manager


This information is provided by RNS
The company news service from the London Stock Exchange
 
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