LEISURE
Merlin Entertainments has told analysts that they will be undertaking trials of escape rooms and pop-up events following the opening of the escape room in San Francisco and The Bear Grylls Adventure in Birmingham. The management teams are excited about the potential of “exponential growth” of such formats.
Following a £5m investment from entertainment and leisure investor Edition Capital, Incipio Group plan to open six new sites within the next 18 months. Incipio Group transforms large dead spaces into social venues focussed on food and drink. Their first sites, Pergola Olympia London, Pergola Paddington, The Prince in West Brompton Crossing, Feast in Hammersmith and W12 Studios are expected to be joined by sites in Wimbledon, Brixton, Putney, Mayfair and Fulham as well as their first site outside London, in Birmingham.
Casual dining group, Boparan Restaurant Group is to explore entering into a CVA with the company looking to close 27 of its 70-strong portfolio and seek rent reductions for a further 13 sites. None of the 17 franchised sites will be affected by the CVA. Although specific sites have not been confirmed it is understood that it will see 20 of the Giraffe fasciae and 7 Ed’s Easy Diners closing. Successful approval of the CVA would trigger a fresh injection of funding from BRG.
RETAIL
John Lewis has announced they are in discussions with an indoor agriculture technology specialist, LettUs Grow, about the idea of opening in-store allotments where shoppers can pick their own produce. Bristol-based LettUs Grow creates irrigation and control systems for indoor farms using aeroponic technology which is a method of cultivation that waters the plants with a fine mist and removes the need for soil. The approach, that would see the allotments in their supermarket chain Waitrose, would bring down the costs of transport, waste and packaging as well as allowing customers to be engaged with the food system and provenance.
Ladies fashion retailer, LK Bennett, is on the brink of administration as it looks for funding to keep the retailer afloat. EY has been appointed to oversee the insolvency if no new investment can be found. Founded by Linda Bennett in 1990 who sold her stake in the chain to private equity firm Phoenix Equity Partners in 2007, bought the company back when the retailer started to struggle in 2017.
Stationery retailer chain Paperchase has launched a CVA following bringing in advisers from KPMG in January. Under the CVA, up to 28 of its 145 stores would have rents reduced by 50% for a 3-month period after which stores will either be closed or continue to operate for a rent-free period. Most of their stores will continue to trade and the retailer has said that it will work with employees affected by any closures to ensure continued employment within the business.
Independent bathroom retailer, BetterBathrooms, has called in the administrators following “severe cash flow difficulties and an extended period of soft trading”. The bathroom, tiling and decorating chain has closed all 13 of its showrooms and two trade counters. Administrators said 10 employees will temporarily be kept on to wind-up the business but 325 employees have been made redundant.
PROPERTY
Savills Investment Management has been granted planning permissions by Westminster City Council for the proposed redevelopment of an island site on Drury Lane, Covent Garden that will be known as ‘The Grain House’. The heritage-led project, expect to be completed in 2021, will combine four buildings to provide 66,000 sq ft of office space on the upper floors and 23,000 sq ft of flexible retail, restaurant and gym uses on the ground and basement levels.
Investment business, Topland Group, has sold its Hallmark Hotels business to an Israeli investment fund working with LGH Hotels Management for around £250m. The portfolio includes the 12 Menzies Hotels they bought in 2013, the 8 hotels in the Hallmark group purchased in 2014 and the 8 from the Feathers group acquisition in 2015 that they merged into one brand under the Hallmark name. It leaves Topland with just 8 hotels operating under that Thistle brand, however they have said they are ‘actively looking for new opportunities'.
Nicholsons Shopping Centre in Maidenhead has been purchased by Tikehau Capital and Areli Real Estate in a deal rumoured to be worth £25m. Tikeau made the acquisition through its Real Estate Value-Added fund that was launched last year. The Nicholsons Centre comprises of more than 190,000 sq ft over around 4.5 acres with 68 stores including the likes of H&M, Topshop, Tesco and Pandora.