The UK’s Big Food Group, the group behind the high street retailer Iceland, has held informal talks with at least two private equity firms about a possible management buyout.
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The company, headquartered in Deeside, Wales, has held talks with Kohlberg Kravis Roberts & Co. and CVC Capital Partners in recent months, Dow Jones reported. According to people familiar with the situation, the group has not decided whether to proceed with an MBO.
Since the beginning of this year, shares in the Big Food Group have plummeted nearly 80%. Concerns for its long-term viability have lead its managers to consider rescue plans. Losses at the Iceland division of 760 supermarkets and a dismal outlook for the retailing sector in general have hit the group hard.
It is believed that Big Food Group started talks with private equity firms in the spring. Shares today [Tuesday] jumped more than 11% in response to the news.
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