Ed’s Easy Diner, the 60-strong chain of 1950s-style American restaurants, is set to be sold in the next few days, possibly at a cut-down price via a pre-pack administration.
The new owner is being mooted as Rcapital, the one-time owner of Little Chef, or Rutland Partners, which owns Pizza Hut UK, according to The Times.
It is being suggested that the company could be sold for as little as £15m after suffering a sharp fall in like-for-like sales. KPMG was appointed last month to find a buyer.
The company was originally put up for sale last year, with a price tag of £90m.
Earlier this year Ivan Schofield, who had been appointed chief executive of Ed’s Easy Diner only six months earlier, stepped down from the role. His was replaced by his predecessor Andrew Guy who has been working in an advisory capacity for the group following his retirement at the end of last year.