Introduction to Cote’s Auction

The private equity company that took control of Cote, the French restaurant chain, at the peak of the pandemic, has started an auction of the business. This move is facilitated by the Partners Group with Interpath’s Advisory, which is working on the search for new investors in Cote.

Background of the Sale

In autumn 2020, Cote was bought from the Partners Group in a deal worth 55 million GBP. Sources near the sales process stated that Interpath marketed the company on the basis of the turnover of over 150 million GBP last year.

Current State of the Business

The chain deals with more than 70 locations in the whole of Great Britain, from almost 100 shortly before it collapsed into bankruptcy five years ago. About 60 of the locations are said to be profitable, which indicates that there could be the scope of further closures.

Industry Challenges

The sale comes at a time when hospitality operators are still exposed to significant challenges. The leading trade organization in the industry warns of another tough period in the coming months. The chairwoman of British hospitality, Kate Nicholl, expressed concerns about the future, stating that unless there is a change from the government, the industry could see 150,000 to 200,000 fewer workers in the first full year due to employer national insurance contribution changes.

Response from Involved Parties

The Partners Group rejected a statement, while Interpath could not be reached for a comment. The situation highlights the ongoing struggles in the hospitality sector, with Cote’s auction being a significant development in the industry’s landscape.