Tycoon Caring close to clinching £1bn sale of Ivy Collection
The billionaire businessman Richard Caring is close to clinching a sale of his collection of Ivy restaurants, paving the way for a new owner of some of London’s biggest celebrity haunts.
Sky News has learnt that Mr Caring, who began exploring an auction late last year, is on the brink of signing a deal with Si Advisers, a little-known London-based firm.
Sources said a deal could be formally struck within weeks and was expected to value at around the £1bn valuation mooted for the business over the last eight months.
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The deal will represent a coup for Mr Caring, dubbed ‘the king of Mayfair’ and owner of some of the world’s most expensive and exclusive restaurants and private members’ clubs.
It is expected to see him offloading close to all of his stake in The Ivy Collection, which now spans dozens of restaurants in affluent locations across Britain.
Other shareholders, including a Qatari fund, are also expected to sell.
The deal will not include Mr Caring’s other restaurants, which include London’s Scott’s, Sexy Fish and J Sheekey, or clubs such as Annabel’s and Mark’s Club in Mayfair.
The identity of the buyer will come as a surprise given the list of prominent sovereign and private investors who considered bidding for The Ivy Collection.
Richard Caring (centre) is shown at a Christmas event in London. File pic: PA
Si Advisers lists its two directors as Hamza Ben Abderahmen and Ameel Somani, who is described as “a private equity investor and keen supporter of the arts”.
Mr Somani serves on a number of boards and previously worked for Helios Investment Partners, the Africa-focused private equity firm.
The Ivy was founded at a site near Leicester Square in 1917 by two friends, Abel Giandolini and Mario Gallati, with the latter then going on to open Le Caprice, which was for decades one of the capital’s most popular restaurants among A-list celebrities before it was closed in 2020.
Mr Caring took over Caprice Holdings in 2005 in a deal which included many of London’s most prominent restaurants.
He has since embarked on a wildly successful expansion of The Ivy brand, taking it to dozens of locations across London and the south of England.
The businessman has also opened branches of The Ivy in Birmingham, Leeds, Manchester and York, as well as cities in Ireland, Scotland and Wales.
He has also focused on expanding The Ivy Asia, a newer concept which numbers fewer than ten restaurants but which he aims to expand.
Mr Caring’s investments have paid off, with record sales and profits in the latest year for which results have been published.
Accounts filed at Companies House for Troia (UK) Restaurants for the period ending 1 January 2023, which comprises The Ivy Collection, showed turnover of almost £303m, and adjusted earnings before interest, tax, depreciation and amortisation of £54.8m.
Updated accounts are expected to be filed later this year.
In 2019, he sold a 25% stake in Caprice Holdings to Hamad bin Jassim bin Jaber Al Thani, the former prime minister of Qatar, in a deal reportedly worth £200m.
Mr Caring has also been a shareholder in the company which owns the Soho House chain of private members’ clubs, and is now widely regarded as the most successful investor in upmarket hospitality assets of his generation.
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His initial wealth, however, was made in the clothing trade, and saw him become a long-term business associate of Sir Philip Green, the former Arcadia owner.
Selling a big stake in The Ivy Collection would crystallise a huge windfall for Mr Caring, with the top end of the London hospitality industry faring resiliently despite Britain’s stuttering economy.
A spokesperson for Mr Caring and HSBC both declined to comment, while SI Advisers could not be reached for comment.
Nick Read is to end his torrid tenure as chief executive of the Post Office as he prepares to give evidence to the inquiry into the Horizon IT scandal.
Sky News has learnt that Mr Read, who took over five years ago, has decided to resign from the government-owned company.
He initially stepped back temporarily from the post to focus on his evidence to the inquiry into the IT debacle that affected hundreds of sub-postmasters.
In a statement confirming his departure after Sky News reported that it was imminent, Mr Read said: “It has been a great privilege to work with colleagues and Postmasters during the past five years in what has been an extraordinarily challenging time for the business and for Postmasters.
“There remains much to be done for this great UK institution but the journey to reset the relationship with Postmasters is well underway and our work to support justice and redress for Postmasters will continue.”
Mr Read had been criticised for his leadership of the Post Office for some time, having been accused of being fixated with his pay package by its former chairman, Henry Staunton.
Mr Staunton was sacked earlier this year by the then business secretary, Kemi Badenoch.
Nigel Railton, a former Camelot executive, was installed as Mr Staunton’s successor.
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Under his leadership, Mr Read had raised the idea of handing partial ownership to Post Office workers, although little progress has been made on such a scheme because of the company’s financial travails.
Mr Read will leave the Post Office next March, and his duties will be assumed while he focuses on the Horizon inquiry by Neil Brocklehurst, the company’s interim chief operating officer.
The outgoing chief executive will be paid during his notice period but will not receive any additional payoff, according to a government source.
A spokesperson for the Department for Business and Trade declined to comment.
Business
No change in CPI inflation ahead of interest rate decision – but another measure ticks unexpectedly up
There’s been no change in the rate of price rises, official inflation figures showed.
The rate of inflation stood at 2.2% in August, the Office for National Statistics said, the same as a month earlier.
The announcement comes the day before interest rate setters at the Bank of England decide on the cost of borrowing, controlled through the interest rate.
Markets are expecting only a 26% chance of an interest rate cut.
Rises behind the headline figure
But another measure of inflation ticked unexpectedly up. Core inflation rose to 3.6%, even higher than economists had forecast.
Bank officials closely watch core inflation as it gives a reading on price rises without elements like food and energy, which are prone to rise and fall quickly.
A rise in core inflation to 3.5% had been anticipated.
An increase was also seen in services inflation, which rose from 5.2% in July to 5.6% in August. This measure encompasses the culture and hospitality sectors.
Why?
The main item acting to bring up inflation was airfares to European destinations, which showed a large rise during the months, following a fall a year ago, the ONS said.
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Lower restaurant and hotel costs, and a cheaper price for refilling a tank of petrol or diesel, was a balance against the air far rise, as was slightly cheaper shop-bought alcohol.
Cheaper oil prices also meant the cost of raw materials was down, which meant the cost of goods leaving factories slowed.
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Responding to the figures chief secretary to the Treasury, Darren Jones, said: “Years of sky-high inflation have taken their toll, and prices are still much higher than four years ago.
“So, while more manageable inflation is welcome, we know that millions of families across Britain are struggling, which is why we are determined to fix the foundations of our economy so we can rebuild Britain and make every part of the country better off.”
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