Bar operator Yates Group is set to be taken private after its independent directors today recommended to shareholders a £93m takeover bid.
The bid is from the company's own management team in tandem with venture capital firm GI Partners.
The management team, including chief executive Mark Jones and finance director Stevan Fowler, will have an 18.6% stake in the new company.
Yates chairman Mike Hennessey, one of the independent directors, said: "Much has been achieved at Yates in the last three years.
"However, during that same period high streets have become overly populated with bars and nightclubs and the sector is now intensely competitive.
"The independent directors therefore believe that the offer represents an attractive price for Yates shareholders."
Yates today revealed turnover for the year to 28 March down by 1.2% to £151.3m.
Although pre-tax profits before execptional items rose by 6.5% to £10.6m, after exceptional costs this fell bo just £4.1m.
Exceptional losses of £6.6m arose from the disposal of 11 underperforming bars.
Jones said: "This has been a sound performance in trading conditions which remain intensely competitive.
"By reducing costs, improving bar efficiencies and achieving better supply chain terms we have improved profits despite and overall decline in sales."
Within the 125 Yates-branded bars, overall like-for-like sales fell by 3.9%.
But the 98 bars converted to a more modern format generated like-for-like sales growth of 1.6%.
Total sales for the Yates brand fell by £6.5m to £126.3m over the year.
The group's 20-strong Ha! Ha! chain performed better, with like-for-like sales up by 3.2%.
Total sales at Ha! Ha! grew by 23%, benefiting from four new sites in Nottingha, Staines, Sutton Coldfield and Ealing.
Operating profit at Ha! Ha! increased by 21% to £2.5m. Food accounted for 36% of sales.
Four more sites are due to open in the next two years and the company is in talks about a further six sites.
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