Restaurant chain PizzaExpress will "categorically" not be issuing another bid for City Centre Restaurants, it was revealed yesterday (8 February).

City Centre rejected the first all-cash 65p per share offer back in November, a move regarded by many analysts as due to poor management. Since then, deteriorating trade and poor performance in its newer outlets has meant that shares have plummeted, closing yesterday at 43p, and full-year forecasts have been lowered.

The group, which controls the Garfunkels, Caffe Uno and Wok Wok chains, has issued a profits warning and revealed that plans for further openings have been suspended.

The offer from PizzaExpress was not the last to be rejected. Talks with an unnamed third party were in progress for the struggling chain Deep Pan Pizza, but City Centre has now revealed that "inadequate terms" have meant that the chain will not be sold after all.