Mark Phillips, the chief executive for Paramount Restaurants, is to step down after a difference of opinion over strategy with the company’s controlling banks that could see the group sold.
The newly appointed chairman Sir David Michel, deputy chairman of Marks & Spencers and former Hilton boss, is also understood to want to leave the Chez Gérard owner.
There had been plans to sell off most of the group’s Bertorelli, Livebait and Caffè Uno eateries and focus resources on a core estate of about ten Chez Gérard and 30 Brasserie Gérard outlets.
But the banks behind Paramount – which include Barclays, HSBC, Royal Bank of Scotland and Sankaty – now want to pursue a more drastic sell off.
One possible buyer is Tragus – operator of Café Rouge and Strada.
Paramount restructuring
Silverfleet bought the business, in 2006 in a deal valued at £107m. However the banks behind the group took control last year.
The process saw the management team retain a 15-20 per cent stake although it is thought to have rendered the equity held by Silverfleet Capital worthless.
Phillips is currently away on holiday.
It is believed Christie & Co had been briefed regarding a sell off of 31 restaurants earlier this year – but it is not known who will handle the disposal of the entire business.
Martyn Leek is news editor of BigHospitality sister title M&C Report.