Novus eyes Balls Brothers deal

Tiger Tiger operator Novus Leisure has entered into exclusive talks to rescue London wine bar group Balls Brothers from administration.

The deal follows weeks of speculation about the future of the 19-strong Balls Brothers chain, following its collapse into administration last November.

The sale is being handled by Zolfo Cooper, the corporate advisory firm that was appointed as administrator.

Novus has pledged to help expand Ball Brothers in what it called its “heartland” of the City and West End of London.

The group, which posted Christmas like-for-like sales up nearly 8%, will offer a pre-booked event service to Balls Brothers’ customers.

Balls Brothers was established 150 years ago as a wine merchant, before branching out into City wine bars more than 40 years ago, becoming a favoured drinking hole of financiers and journalists.

Novus has not disclosed how much it is considering paying for the wine and Champagne bars, but it is likely to pay a small premium over debts to Barclays Bank.

The company was acquired by the Lewis & Clarke bar chain for £14m in 2006. It went into administration last November, with debts to Barclays estimated at around £7 million.

Reports at the time suggested some of its problems began after it acquired the Lewis & Clarke bar chain for £14m in 2006.

Novus Leisure operates 38 venues, including Tiger Tiger, Babble, Jewel and the Zoo Bar in Leicester Square.

Lucy Shaw, 31.01.2011