Richoux to sell Piccadilly lease for £500k

19th Nov 2018 10:38

(Sharecast News) - AIM-listed restaurant owner Richoux said on Monday that it has agreed to sell the lease to Richoux Piccadilly for £500,000 in cash, which will be used for working capital.The company, which also owns Friendly Phil's, Villagio and The Broadwick restaurants, said the Piccadilly restaurant generated unaudited pre-tax losses of around £0.01m in the 53 weeks to 31 December, on revenues of £1.1m.The sale of the lease is conditional on obtaining the landlord's licence to assign and subject to this being received, the sale would complete before 21 March 2019.Richoux has also entered into conditional agreements to assign the leases to its Friendly Phil's Braintree and Richoux Gloucester Road restaurants for £25,000 and £100,000, respectively.Chief executive Jonathan Kaye said: "Following the strategic review of our estate, we have entered into agreements, subject to satisfaction of certain conditions, to sell the leases to our Piccadilly, Braintree and Gloucester Road restaurants which, if successful, will enable us to focus on the remaining portfolio."At 1030 GMT, the shares were down 8.6% to 6.40p.