Tragus Group, the owner of the Café Rouge and Bella Italia brands, has announced the sale of the Strada brand as it nears the end of its restructuring plan.
The sale of Strada Trading Limited to SCP Sugar Limited, a controlled entity of Sun Capital Partners, was completed for a total consideration of £37m, including 43 sites. A further five Strada sites have been sold to independent operators.
In June the company announced the organisational and financial restructuring plan as it sought to reduce its debt burden from £354m to £91m.
It also proposed a Company Voluntary Arrangement designed to revise its lease terms with landlords, which was accepted by creditors in late June.
Following the sale of the Strada brand, Tragus Group said in a statement it will now focus on the “core” Café Rouge and Bella Italia brands.
Tragus Group CEO Steve Richards said: “The sale of Strada marks a successful end to the Tragus Group restructuring process which created a more focused business, with 200 high quality Café Rouge and Bella Italia sites across the UK.
“Next week Tragus will refinance with its financial sponsors and put in place the funding to enable it to grow to 500 restaurants over the medium term. The growth phase has already begun and we will open 12 new sites in the current year and have secured a further 18 in next 12 months.”