Pho owners consider sale of restaurant chain
The private equity owner of Vietnamese-style fast food chain Pho is considering offloading the business.
Gresham House, which bought the fund and investment manager in charge of Pho from Livingbridge last year, is reportedly mulling a sale of the London-based casual dining chain.
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The company outlined expansion plans in its latest financial filing, saying it proposed further new openings over the next two and a half years.
The over-expansion of restaurant brands has caused a number of well-known businesses to slow down store opening plans or close branches, as restaurants operate in an increasingly challenging and competitive market.
However, the sale of Pho could test investor demand for casual dining businesses that have been able to weather the storm, the Sunday Telegraph, which reported the potential deal, said.
“Such a roll out plan is not considered to be a risk to the business as sites will not be opened if it is thought they would cause any unnecessary strain on the current estate,” the restaurant firm said.
It added: “Unlike many in the sector, Pho has adopted a steady growth plan which means the company is in a very healthy position, with a profitable portfolio and no onerous leases.”
In its latest accounts, for the year ended 24 February 2019, the company said turnover was up 12.8 per cent to £34.4m and like-for-like sales were up 5.4 per cent.
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Stephen and Juliette Wall launched the Pho restaurant chain in 2005 following a visit to Vietnam, opening the first branch in Clerkenwell.
The family-run business now has 29 branches across the country, with a focus on London.
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