The burger chain 5 Guys will this week announce a £185m refinancing because it seeks to increase its European property in a difficult local weather for restaurant operators.
Sky Information understands that 5 Guys, which launched within the UK in 2013, has landed a brand new five-year debt cope with lenders together with Britain’s main excessive road banks.
Sources mentioned the settlement was more likely to be introduced on Wednesday.
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5 Guys trades from almost 180 websites within the UK, using roughly 5,500 folks.
It additionally operates underneath the identical company possession construction in France, Germany and Spain, with its European operations in complete using about 9,000 folks.
The European enterprise is a 50-50 three way partnership between Freston Ventures – the funding automobile of Sir Charles Dunstone, co-founder of The Carphone Warehouse – and the Murrell household which based 5 Guys within the US.
It’s now anticipated to hunt to open a bigger variety of drive-thru eating places within the UK and elsewhere in Europe.
In a press release issued to Sky Information, John Eckbert, 5 Guys Europe’s chief government, mentioned: “Securing further debt capital at a extra beneficial charge in in the present day’s market is a major accomplishment.
“This £185m refinancing transaction is a testomony to the energy of the 5 Guys model and our profitable operational efficiency.
“The newest capital injection will likely be instrumental in accelerating our growth technique.”
The deal comes as hospitality teams warn of an rising problem to outlive following tax will increase introduced in Rachel Reeves’s Funds final autumn, with chains comparable to Cote now exploring pressing sale processes in a bid to safe new funding.
