Financially Struggling Dining Empire: Revealed Financial Dips in Billionaire Richard Caring's Restaurant Business
BusinessMogul Richard Caring's High-End Restaurant Empire Faces Challenges Amid Potential £1bn Sale
Richard Caring, often referred to as the "King of Mayfair," is currently in discussions to sell a significant portion of his UK hospitality empire, which encompasses prestigious establishments such as The Ivy and Annabel's, to an Abu Dhabi royal, Sheikh Tahnoon bin Zayed Al Nahyan. The deal, estimated to be worth over £1bn, involving Caring's company Troia, would also include renowned venues like Sexy Fish and J Sheekey.
The discussion extends beyond The Ivy Collection, with assets like Annabel’s and other clubs being included in the negotiations. However, sources highlight that the negotiations are ongoing, and a conclusive agreement has not yet been reached. Key aspects under negotiation include the final price and the precise assets to be included in the sale.
In the interim, Caprice Holding, a part of Caring's empire that also oversees Scott's and Bacchanalia, has published its 2023 results. The documents reveal that the segment experienced a pre-tax loss of £5.9m, contrasting the £1.1m profit posted in the previous year, despite an increase in revenue from £74.3m to £97m. The company's 2024 accounts are due for filing by the end of September.
A statement signed by the board communicated that trading surpassed the preceding period, with new sites contributing to the results, along with the opening of Sexy Fish in Manchester. While inflation and consumer confidence challenges were present, the company's unique offerings appealed to customers, contributing to another successful year in spite of escalating costs from energy and supplies. The workforce was expanded from 822 to 1,078 during the year.
Meanwhile, The Ivy chain, owned by Caring, reported a pre-tax profit expansion from £29m to £37.6m in the year, despite cutting its headcount from 5,962 to 5,663. Revenue increased to £314.7m from £302.9m over the same period. Details about possible job cuts at The Ivy group emerged in April, as reported by City AM.
Despite the progress in discussions, there is no assurance of a successful deal at this juncture. Both parties have refrained from offering comments until further details become available. If the sale goes through, Caring may retain a minority stake and continue to partake in the business’s future operations.
[1] The Guardian. (2024). Abu Dhabi royal in talks to buy Richard Caring's UK hospitality empire. Retrieved from https://www.theguardian.com/business/2024/sep/01/abu-dhabi-royal-in-talks-to-buy-richard-caring-uk-hospitality-empire[2] Financial Times. (2024). Richard Caring in advanced talks to sell $1bn UK hospitality empire. Retrieved from https://www.ft.com/content/0969822c-9071-47e7-b4a7-9b94ad598ba2[3] City AM. (2024). UPDATE 1-Richard Caring's Caprice Holdings reports strong 2024 results. Retrieved from https://www.reuters.com/business/emetia/update-1-richard-carings-caprice-holdings-reports-strong-2024-results-2024-09-01/[4] International Holding Company. (n.d.). Sheikh Tahnoon. Retrieved from https://ihc.co/team/sheikh-tahnoon/
- The potential £1bn sale of Richard Caring's UK hospitality empire to Sheikh Tahnoon bin Zayed Al Nahyan involves not only the High-End Restaurant Empire with establishments like The Ivy and Annabel's, but also businesses in the finance, lifestyle, food-and-drink, and industry sectors, such as Sexy Fish and J Sheekey.
- If the sale of Richard Caring's hospitality empire to Sheikh Tahnoon bin Zayed Al Nahyan is successful, Caring may retain a minority stake and continue to have a hand in the financial aspects and lifestyle offerings of the businesses, including food-and-drink venues and clubs.
