Urban Dining’s chief executive has resigned in a boardroom shake-up and the company has admitted it may be forced to sell-up due to weak trading.
The company, which owns Tootsies, said that despite opening six new restaurants in September and October this year, taking the restaurant estate to 30, “recent trading had not been good”.
Urban Dining’s shares are currently worth 34p each, significantly lower than the 50p value they attracted when the company listed on the Alternative Investment Market in May 2004.
As a direct result of this fall, the company said it had abandoned its growth by consolidation strategy that it has pursued since creation.
A boardroom shake-up has seen chief executive and director John Metcalf leave the company and chairman Glen Tomlinson granted executive powers to oversee a review of the options, which could include a sale.
Urban Dining said it would update shareholders on the progress of the review in the New Year.
By Chris Druce
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