Perusa-backed restaurant chain Maredo files for insolvency

The company made its announcement on Monday 23 March, citing a recent loss of revenue due to widespread restaurant closures imposed due to the coronavirus outbreak as the reason behind its financial difficulties. It closed its restaurants on 18 March following advice from the German government, according to a statement on its website.

The company employs 1,000 staff and has 37 branches, including two in Austria. It was founded in Berlin in 1973 but is now headquartered in Düsseldorf. It reported revenues of €50m in 2019, according to a report from Süddeutsche Zeitung.

Perusa acquired Maredo in May 2017 from ECM Equity Capital Management and aimed to pursue a growth strategy based on targeted investments and product development. Perusa invested via Perusa Partners II, which held a final close in November 2011 on €207m. The vehicle has made 11 platform investments, two of which have been realised, according to Unquote Data.

Maredo was originally acquired by private equity in April 2005 from hospitality and leisure conglomerate Whitbread Group, which owns UK-based chains including Costa and Premier Inn. ECM led the management buyout of Maredo, deploying equity from German Equity Partners II, which held a final close in September 2000 on €125m. GEP II LPs Parcom Capital and Fortis Private Equity also co-invested to back the MBO. Investkredit Bank provided a senior debt facility and a mezzanine tranche for the acquisition.

ECM then backed the company's secondary MBO via German Equity Partners III in May 2008. The vehicle held a final close in September 2006 on €250m and made five investments in total during its lifespan. Parcom and Fortis sold their stakes in the business, as did ECM's GEP II.

Restaurants are just one sector of the leisure industry to be significantly affected by social distancing measures imposed across Europe in the wake of the coronavirus outbreak. Unquote reported last week that Germany-based car hire and logistics company Arwe had also filed for insolvency due to coronavirus uncertainty.

Click here to view Unquote's coronavirus content hub, a compilation of our coverage of the crisis and its impact on the European PE market.

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• Topics
• DACH
• Exits
• people moves
• Germany
• Perusa GmbH
• coronavirus