The Restaurant Group eyes £175m capital raise to expand Wagamama, pub businesses
It will also be used as a buffer in case of a resurgence of the COVID-19 pandemic in the country.
The Restaurant Group (TRG), which owns Japanese-inspired chain Wagamama, is looking to tap investors for £175 million as part of its restructuring plans.
The casual dining operator, which also owns Frankie and Benny’s, said the capital raise will be used as a buffer in case of a resurgence of the COVID-19 pandemic and expand its Wagamama brand and pubs business.
The group added it expects there to be “good and profitable opportunities” for expansion.
The operator will also use the proceeds of the share placing to pay down its net debt.
Total revenues plunged 57% to £459.8 million due to the impact of lockdown closures during the height of the pandemic. However, its Wagamama business was described as delivering“exceptional” like-for-like sales growth when it was open for dine-in trading.
TRG posted a loss before tax of £127.6 million, compared to a £37.3 million loss in 2019.
