Ed’s Easy Diner on the verge of being sold, report claims

Ed's Easy Diner

A private equity firm best known for its ownership of Little Chef is tipped to be on the verge of announcing a deal to buy Ed’s Easy Diner.

R Capital will complete the deal today and inject “several million pounds” into the chain, according to the Daily Telegraph, which said the firm will replace RBS as its main creditor in a debt-for-equity swap.

The report claimed that Ed’s has been struggling following a slump in trading and over-expansion. After hiring restructuring experts Alix Partners, it originally looked at offloading some of its sites but chose instead to negotiate cheaper rents with landlords.

It then hired KPMG to find new investors. The deal with R Capital is expected to value Ed’s at less than its debts, which stand at just over £20m, the Telegraph said.

Rutland Partners, which owns Pizza Hut UK, has also been linked with the business.

R Capital owned Little Chef for six years before selling it to the Kuwaiti conglomerate Kout Food Group in 2013.

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