Longtime private equity investors in The Alchemist, the popular downtown cocktail bar chain, are ending their ownership of the company.
Sky News has learned that Palatine, who has owned The Alchemist since 2015, was working with advisers on an auction of the company.
The Alchemist, which has weathered a difficult economic environment exacerbated by tax rises earlier this year, operates across 23 locations in the UK and one in Germany.
It employs nearly 1,000 people.
Municipal sources said the sale process was being conducted by Pura Advisory.
The chain operates in locations including Birmingham, London, Manchester and Newcastle.
News of the potential sale comes on the day Sir Keir Starmer outlined his plans for a rapid review of licensing rules aimed at allowing pub and bar operators to extend their opening hours.
“This review aims to cut red tape, increase attendance and make it easier for venues to host the type of events that bring people together,” the Prime Minister said.
“When our residents do well, so does our economy. »
Palatine’s portfolio encompasses a number of consumer-facing businesses, but the firm is now increasingly focusing on business-to-business investments.
The price he hoped to get from a sale of The Alchemist was unclear Thursday.
Last year it announced plans for ten more openings, supported by a £15m loan facility with challenger bank OakNorth.
Simon Potts, managing director of The Alchemist, said at the time: “Despite the well-known challenges facing the hospitality sector, we are proud of our unwavering commitment to growing our brand across the UK. »
The company also closed a number of underperforming sites.
A Palatine spokesperson declined to comment.