Rescue plan collapses

Company management had been seeking a potential buyer for its troubled business, which also includes the Walkabout pubs and Old Orleans restaurants.

But today they were forced to announce that discussions had stopped, prompting another slide in its share price.

Regent blamed the credit crunch saying likely bidders were unable to get the necessary funding for the takeover.

It seems the City got early wind of the troubles, which would have explained the collapse share values earlier this week.

Following the failure of the takeover talks, Regent announced a boardroom shakeup, with executive chairman Bob Ivell taking a non-executive role, former finance chief John Leslie becoming chief executive and former commercial director Simon Kaye becoming chief operating officer.

The new management will be looking to sell off some of its ‘non-core’ properties and slash costs. The company has found sustaining sales in Walkabout pubs particularly difficult – blaming the smoking ban for some of its troubles.

Regent warned that trading in the last six months had been ‘very difficult’ and pre-tax profits for the year to June 28 would be ‘minimal’. It said there were likely to be job losses.

Published: 26 Jun 2008