Bay Restaurant Group

Bay Restaurant Group was a British hospitality operator specializing in branded pubs, bars and casual restaurants. It emerged in March 2008 from the restructuring of the Laurel Pub Company, a business whose portfolio had been assembled through acquisitions involving Yates's, the SFI Group's Slug and Lettuce and Bar Med chains, and the La Tasca Spanish restaurant chain. The group therefore represented a consolidation of several established leisure brands rather than the creation of a single new consumer-facing concept. The company's roots lay in Laurel Pub Company, which had been associated with the Hogshead pub chain and was owned by Robert and Vincent Tchenguiz. Laurel sold 432 neighborhood pubs to Greene King in May 2004, but R20, Robert Tchenguiz's investment company, acquired the company later that year. In 2005, R20 added the Slug and Lettuce and Bar Med chains after SFI Group entered administration, and acquired Yates's for £202 million. Many Yates's venues were subsequently converted to the Slug and Lettuce format. Laurel also acquired the Spanish restaurant chain La Tasca in 2007, although La Tasca later separated from the group in 2011. Laurel encountered financial difficulty in March 2008 and entered administration on 27 March. High rental costs were reported as a significant factor. R20 reacquired the operating business through a pre-packaged insolvency process, and most of the former company became Bay Restaurant Group on 28 March 2008. The reconstituted business was financed by Kaupthing Bank, whose failure during Iceland's financial crisis later intensified the group's ownership and funding problems. In 2009, the banks moved to take control of the business after disputes concerning debt owed by Tchenguiz-related interests. On 27 July 2009, Bay Restaurant Group was transferred to the control of Commerzbank and Kaupthing through a debt-for-equity transaction. The restructuring reduced the company's debt by approximately £150 million, according to contemporary accounts. Bay was subsequently marketed for sale in 2010, but its estate was progressively separated. In September that year, Mitchells & Butlers bought the 22-site Ha Ha Bar and Grill business, with a number of locations converted to the All Bar One brand. The Slug and Lettuce estate was sold to Town & City Pub Company in February 2010, while Hogshead and Yates's were also associated with Town & City, another business created from the former Laurel estate. Bay Restaurant Group was consequently not a lasting standalone national brand. Its significance in the British hospitality sector rests on the consolidation and later disassembly of a large pub-and-restaurant portfolio during a period of high commercial rents, leveraged ownership and banking-sector distress. Publicly available reference material does not establish a continuing independent Bay Restaurant Group operation after the disposal and restructuring of its principal brands.

Bay Restaurant Group developed from the Laurel Pub Company and related leisure businesses rather than from a single greenfield launch. Laurel had been associated with the Hogshead pub chain and was owned by Robert and Vincent Tchenguiz. In May 2004, Laurel sold 432 neighborhood pubs to Greene King for £654 million. R20, an investment company associated with Robert Tchenguiz, acquired Laurel for £151 million in November 2004. The portfolio expanded materially in 2005. R20 acquired the Slug and Lettuce and Bar Med chains for £80 million after Surrey-based SFI Group entered administration. It also bought the Yates's chain for £202 million. A significant number of Yates's outlets were subsequently converted to Slug and Lettuce venues, illustrating the group's strategy of reallocating sites among established formats. In February 2006, the Forno Vivo and Santa Fe chains were sold. Laurel then acquired La Tasca for £123 million in April 2007, adding a Spanish restaurant concept to its pub and bar holdings. The business entered administration on 27 March 2008. Contemporary descriptions attributed the financial strain partly to high rents. R20 reacquired the company through a pre-packaged insolvency process, with the operating assets financed by Kaupthing Bank. Most of the former Laurel business became Bay Restaurant Group on 28 March 2008. The company thus began life as a restructured operator carrying a substantial branded estate and a significant debt burden. Kaupthing's collapse during the Icelandic financial crisis in October 2008 created a further ownership crisis. In February 2009, Kaupthing sued Tchenguiz in connection with an unpaid overdraft reported at £643 million. Banks subsequently removed Tchenguiz's involvement through an offshore company known as Oscatello. On 27 July 2009, Commerzbank and Kaupthing took control of Bay Restaurant Group through a debt-for-equity swap. The arrangement reduced the company's debt by about £150 million and made Kaupthing the major shareholder. The group was put up for sale in May 2010, with Tragus Ltd reported as a possible purchaser at an indicative value of approximately £70 million. Instead of a single disposal of the entire business, the estate was progressively broken up. Town & City Pub Company bought the 82-site Slug and Lettuce chain in February 2010. Hogshead and Yates's were also associated with Town & City, which had been created from another part of the former Laurel structure and was based in the same Luton building. In September 2010, Mitchells & Butlers acquired 22 Ha Ha Bar and Grill pubs for £19.5 million; twelve were converted to All Bar One locations, and the Ha Ha brand disappeared. La Tasca later demerged into a standalone business under La Tasca Holdings Ltd in 2011. These transactions left Bay Restaurant Group without the integrated portfolio that had defined it. The available reference material does not document a continuing independent Bay operation, so the company is best treated as defunct or absorbed following the disposal of its principal chains.

• 2011

  La Tasca becomes standalone

  [1]Bay Restaurant Groupen.wikipedia.org

  La Tasca demerged from the group under La Tasca Holdings Ltd.

• 2010

  Major brand disposals

  [1]Bay Restaurant Groupen.wikipedia.org

  Slug and Lettuce was sold to Town & City Pub Company, while Ha Ha Bar and Grill was sold to Mitchells & Butlers.

• 2009

  Bank-led debt-for-equity restructuring

  [1]Bay Restaurant Groupen.wikipedia.org

  Commerzbank and Kaupthing took control of the company through a debt-for-equity swap.

• 2008

  Bay Restaurant Group established

  [1]Bay Restaurant Groupen.wikipedia.org

  Following Laurel's administration and an R20-backed pre-packaged restructuring, most of the former company became Bay Restaurant Group.

• 2007

  La Tasca acquired

  [1]Bay Restaurant Groupen.wikipedia.org

  Laurel acquired the Spanish restaurant chain La Tasca.

• 2005

  SFI brands and Yates's join the portfolio

  [1]Bay Restaurant Groupen.wikipedia.org

  R20 acquired Slug and Lettuce and Bar Med from the failed SFI Group, followed by the purchase of Yates's.

• 2004

  Sale of Laurel's neighborhood pubs

  [1]Bay Restaurant Groupen.wikipedia.org

  Laurel Pub Company sold 432 neighborhood pubs to Greene King for £654 million.

• 2004

  R20 acquires Laurel Pub Company

  [1]Bay Restaurant Groupen.wikipedia.org

  R20 acquired Laurel Pub Company for £151 million, bringing the business under Robert Tchenguiz-associated ownership.

A multi-brand United Kingdom pub, bar and casual-dining operator assembled through acquisitions and managed as a portfolio of established leisure formats.

• Bar and pub chain

  Slug and Lettuce

  Slug and Lettuce was one of the group's principal branded bar formats. It became especially important after many Yates's sites were converted to the concept. The 82-site chain was sold to Town & City Pub Company in February 2010, separating it from Bay Restaurant Group.

• Pub and bar chain

  Yates's

  Yates's was a major pub chain acquired by R20 in 2005 as part of the expansion of the Laurel-related portfolio. A number of its venues were converted to Slug and Lettuce outlets. The brand later became associated with Town & City Pub Company rather than remaining within Bay Restaurant Group.

• Pub chain

  Hogshead

  Hogshead was an original Laurel Pub Company pub chain and formed part of the business heritage inherited by the restructured group. It was subsequently associated with Town & City Pub Company after the former Laurel estate was divided.

• Bar chain

  Bar Med

  Bar Med was acquired alongside Slug and Lettuce from SFI Group after SFI entered administration in 2005. It was one of the branded leisure concepts brought into the Laurel-related portfolio.

• Spanish restaurant chain

  La Tasca

  La Tasca was a Spanish-themed restaurant chain acquired by Laurel in 2007. It did not remain permanently within Bay Restaurant Group: the business demerged in 2011 under La Tasca Holdings Ltd.

• Bar and restaurant chain

  Ha Ha Bar and Grill

  Ha Ha Bar and Grill was a 22-site pub and restaurant business sold to Mitchells & Butlers in September 2010. The transaction ended the brand's standalone identity, with twelve locations converted to All Bar One.

• 2011

  Demerger of La TascaM&A

  Background

  The Spanish restaurant chain was one of the remaining recognizable concepts connected with the former Laurel portfolio.

  Action taken

  La Tasca separated into a standalone business under La Tasca Holdings Ltd.

  Aftermath

  The demerger further reduced the integrated brand portfolio associated with Bay Restaurant Group.

  Source

• 2010

  Sell the Slug and Lettuce chainM&A

  Background

  The creditor-owned group was placed on the market while its portfolio was being reorganized.

  Action taken

  Town & City Pub Company acquired 82 Slug and Lettuce pubs.

  Aftermath

  A major consumer-facing chain left Bay Restaurant Group and joined the related Town & City structure.

  Source

• 2010

  Dispose of Ha Ha Bar and GrillM&A

  Background

  Bay Restaurant Group was being broken up rather than sold as a single continuing portfolio.

  Action taken

  Mitchells & Butlers purchased 22 Ha Ha Bar and Grill pubs for £19.5 million.

  Aftermath

  Twelve venues were converted to All Bar One and the Ha Ha brand disappeared.

  Transaction value. £19.5 million (September 2010)

  Source

• 2009

  Transfer control to creditor banksStrategy

  Background

  Kaupthing's financial collapse and disputes over Tchenguiz-related debt created pressure for a change in ownership.

  Action taken

  Commerzbank and Kaupthing took control through a debt-for-equity swap.

  Aftermath

  The transaction reduced debt by approximately £150 million and made Kaupthing the major shareholder.

  Debt reduction. Approximately £150 million lower (2009 restructuring)

  Source

• 2008

  Rebuild the business through a pre-packaged insolvencyStrategy

  Background

  Laurel Pub Company entered administration amid financial pressure, including reported high rental costs.

  Action taken

  R20 reacquired the operating business, and most of the former Laurel estate was relaunched as Bay Restaurant Group.

  Aftermath

  The restructured company continued with a large branded portfolio but remained exposed to substantial financing and ownership problems.

  Source

• 2011

  La Tasca demerges from the group[1]Bay Restaurant Groupen.wikipedia.org

  M&A

  La Tasca separated into an independent business under La Tasca Holdings Ltd, further reducing the collection of brands associated with Bay Restaurant Group.

• 2010

  Slug and Lettuce sold to Town & City Pub Company[1]Bay Restaurant Groupen.wikipedia.org

  M&A

  Town & City Pub Company acquired the 82-site Slug and Lettuce chain in February 2010, separating a major operating brand from Bay Restaurant Group.

• 2010

  Ha Ha Bar and Grill sold to Mitchells & Butlers[1]Bay Restaurant Groupen.wikipedia.org

  M&A · Other

  Mitchells & Butlers purchased 22 Ha Ha Bar and Grill pubs in September 2010. Twelve sites were converted to the All Bar One format, ending the independent presence of the Ha Ha brand.

• 2009

  Banks take control through debt-for-equity restructuring[1]Bay Restaurant Groupen.wikipedia.org

  M&A · Other

  Commerzbank and Kaupthing acquired control of Bay Restaurant Group on 27 July 2009 through a debt-for-equity swap intended to recover lending exposure and reduce the company's debt by approximately £150 million.

• 2008

  Laurel Pub Company enters administration[1]Bay Restaurant Groupen.wikipedia.org

  Bankruptcy · Other

  Laurel Pub Company entered administration amid reported financial pressure linked in part to high rents. R20 reacquired the operating business through a pre-packaged insolvency arrangement, and most of the former company became Bay Restaurant Group the following day.

• 2008

  Bay Restaurant Group is formed from the Laurel estate[1]Bay Restaurant Groupen.wikipedia.org

  Other

  Bay Restaurant Group began operating on 28 March 2008 after the restructuring of Laurel Pub Company, retaining a portfolio of pub, bar and restaurant brands.

1. 1Bay Restaurant Groupen.wikipedia.org