Activist hedge fund Oasis Capital Management has reportedly delivered an ultimatum to London-listed The Restaurant Group (TRG) – overhaul the company or fire the CEO, according to a report by the Financial Times on Tuesday.
The report, citing two people familiar with the matter, said that Oasis was pressuring the British hospitality group to shake up the business or oust its owner after the Hong Kong-based hedge fund previously expressed its disappointment in how TRG was handling the business.
The Restaurant Group’s
RTN,
stock remained stagnant on Tuesday morning in London, moving down just 0.22%. The shares have struggled to recover from the height of the pandemic, which saw many of its restaurants closed for a number of months, slumping 57% since early 2020 and declining 37% in the last 12 months.
The Restaurant Group is one of the U.K’s biggest casual dining operators, owning over 400 venues across brands such as Japanese-inspired restaurant Wagamama and Italian-American chain Frankie & Benny’s. The group will publish its full-year results on Wednesday.
Last month, the group rejected Oasis’s demand for a seat on the board after declaring a 6.5% stake in the company. Oasis accused the group at the time of having “one of the worst performing share prices of any U.K. leisure company.” It also demanded TRG lead a strategic review of the business by an independent lender, which the group also rejected.
According to one source by the Financial Times, Oasis wants to pressure TRG into a position where it can ““reduce debt, reduce interest, resume dividends… get a higher stock rating, better market cap [and] attract better people.”
Oasis did not immediately respond to a request for comment and TRG declined to comment.
