Sports Cafe to be sold as a going concern

Sports based bar chain Sports Cafe is to be sold as a going concern, its administrators have said.

The company appointed joint administrators Bruce Mackay and Alan Lovett of Baker Tilly yesterday, after its bankers refused to extend its credit after poor Christmas trading.

Baker Tilly will now work with Edward Symmons Hospitality & Leisure to sell the bars.

Colin White, Partner at Edward Symmons Hospitality & Leisure said: “We are looking to sell the business as a going concern and expect strong interest from a range of companies including nightclub, pub and restaurant operators.”

Sports Café has sites in London’s Haymarket, Birmingham, Bristol, Glasgow, Leeds, Liverpool, Manchester and Newcastle.

The company said the poor performance during the festive period combined with an uncertain outlook for consumer spending in 2008 meant it had no option but to call the administrators in.

Sports Cafe’s shares were suspended late on Friday afternoon.

Last week the group said that while its bank had been supportive in the past there was no guarantee that they would be bailed out this time.

The company, which ended potential takeover talks this time last year, had put in a place a series of cost cutting measures to stabilise the business.

In November 2007 the company said there were early indications of “some success” with profits over the past four months ahead of last year’s and a strong pipeline of Christmas bookings.

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Sports Café website >>

by Christopher Walton

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