Giardino goes private and says farewell to founders

Restaurant and coffee shop operator Giardino Group is to go private again after a disappointing performance on the stock market.

The company will delist from the Alternative Investment Market (AIM) on 19 February and part ways with founders David Leveton and Franco Gasparelli. This will see the management team hold a 70% share of the group through newly created holding company, Town Centre Restaurants.

The Bank of Scotland, which helped finance the deal, will hold the remaining 30% share in the group.

"Our company founders have been in this business for over 35 years and felt the time was right to move on," said company financial director Ron Sutcliffe. "We also felt no one had paid us much attention while on the stock market. Although we listed at 125p per share, our average price has hovered between 45p to 55p, which simply isn't good enough to raise money against."

Giardino Group owns restaurant brands Auberge and Azzurro, as well as the North Six restaurant and bar. It has 57 outlets, predominantly in shopping centres throughout the Midlands and the South of England.

Following delisting, the company is planning to review and consolidate its business, possibly shedding eight to 10 units.