Le Pain Quotidien secures partial rescue deal

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Bakery brand Le Pain Quotidien's UK operation has reportedly been sold in a pre-pack administration deal.

According to Sky News, nearly 200 redundancies are expected to be made at the Belgian-owned chain, in a transaction that will preserve 16 of Le Pain Quotidien's 26 UK sites.

Talks with landlords about the lease arrangements on those remaining sites are understood to be planned for the coming weeks.

The buyer is believed to be a subsidiary of BrunchCo21 SA, a newly formed company understood to be connected to Cobepa, a Belgian-based investment firm that is the chain's existing backer.

It was reported back in April that Le Pain Quotidien was on the brink of collapse following the Government-mandated Coronavirus lockdown of the hospitality sector, with professional services firm Alvarez & Marsal brought in to oversee an emergency sales process for the business.

The deal, which may be announced before the weekend, is understood to also involve the closure of Le Pain Quotidien's UK head office.

The new owners are expected to invest additional sums in the UK business when the takeover completes, but further details of that investment are unclear.

BrunchCo, which is also in the process of acquiring Le Pain Quotidien's French and Belgian operations, is understood to have agreed a separate deal for M80, a Belgian private equity investor, to become its majority shareholder.