LONDON -- City Centre Restaurants (CCR), announced yesterday that it is selling its troubled Deep Pan Pizza brand to a management buyout team in a £4 million ($5.7 million U.S.) deal.
The Deep Pan deal, which involves an initial payment of £1 million ($1.4 million U.S.) and the balance of £3 million ($4.3 million U.S.) spread over two years, comes more than three years after City Centre first put the loss-making 54-strong business up for sale. The deal involves 49 of the restaurants.
Two previous deals over Deep Pan have fallen apart at the eleventh hour, including an £11.75 million ($16.75 million U.S.) sale to Queensborough Holdings.
Since then CCR has been hit a by series of profit warnings, parted company with much of its former management and written down the value of Deep Pan to just £3.3 million ($4.7 million U.S.). The Deep Pan team is led by its operations director, Bill McTaggart, and backed by Lloyds TSB. CCR is retaining a 19.9 percent stake.