Struggling Food and Drink Group suspends shares

Shares in struggling bar operator Food and Drink Group have been suspended as discussions over securing its future continue.

The Henry J Beans and Jamie's Bar owner, which runs 31 bars, has been badly hit by challenging trading conditions and was forced to issue a profit warning in April.

It is in discussions with finance providers over new funding to secure the immediate future of the business, but has warned that there can be "no guarantee that these discussions will lead to a favourable outcome" for the group

"Due to the uncertainty surrounding the outcome of the discussions referred to above, the company has today requested that the trading of its ordinary shares be suspended with immediate effect," Food and Drink Group said in a statement.

"FDG also confirms that it is in discussions with several other parties which may lead to either the reverse takeover of another business in the leisure sector for the consideration of shares in the company, or may or may not lead to an offer for the company."

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By Daniel Thomas

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