The activist fund manager Oasis Management has taken a stake in Wagamama owner The Restaurant Group, raising the prospect of a shake-up at the pub and dining company.
(Bloomberg) — The activist fund manager Oasis Management has taken a stake in Wagamama owner The Restaurant Group, raising the prospect of a shake-up at the pub and dining company.
Hong Kong-based Oasis, which previously waged a successful activist campaign at British manufacturer Premier Foods, has amassed a 5% stake in The Restaurant Group, according to a company filing.
Daniel Wosner, the firm’s head of Europe, has already engaged with the company’s management team, according to a person familiar with the matter who asked not to be named as the discussions were private.
The Restaurant Group has more than 420 restaurants and pubs across the UK, including chains such as Frankie & Benny’s, Chiquito and Brunning & Price. Led by CEO Andy Hornby, who was in charge of Halifax Bank Of Scotland when the bank was rescued during the 2008 financial crisis, the group endured a volatile period through the pandemic when outlets were forced to close.
Consumers have since returned, but restaurants are now also having to contend with soaring energy bills, rising food prices and staff shortages. At the same time, there are fears that consumers will cut back as the cost-of-living crisis continues to bite.
The Restaurant Group’s stock is down nearly 65% in the past year, with its market value hovering around £268 million ($331 million), far below the £559 million the company agreed to pay for Wagamama in 2018. In December its existing lenders agreed to amend and extend its debt facilities.
Oasis is best-known in the UK for securing a seat on the board of Premier Foods and battling to remove its former Chief Executive Officer Gavin Darby. Oasis said Premier had “mismanaged” its brands, which include Mr Kipling cakes. Darby left the company in 2019 but said his departure had not been influenced by Oasis.
Wosner stepped down from the Premier Foods board last year, after a five-year campaign for change at the maker of Mr Kipling cakes.
Representatives for Oasis and for The Restaurant Group declined to comment.
(Updates with person familiar comments in third paragraph)
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