Gail’s Bakery has reportedly ended talks of stock market flotation, and will now focus on growing the business privately.
The London-based artisan bakery chain, backed by founder of Pizza Express Luke Johnson, has been in discussions with City broker FinnCap about the potential to go public, but has now made the decision to focus on growth privately.
Earlier this year Johnson’s investment firm, Risk Capital Partners, made the decision to float Patisserie Valerie on the junior AIM market.
Reportedly, there was potential to do the same with Gail’s, but it emerged this past weekend via The Sunday Telegraph, that Johnson has decided to delay any exit discussions and listing plans until 2015.
The bakery, co-founded by Tom Molnar and Ran Avidan currently has 17 bakeries in and around London, and opened its first site in Hampstead in 2005. It sells loaves from Gail Mejia’s firm The Bread Factory, as well as cakes and Viennoiserie.
Johnson invested £10.5m in Gail’s and The Bread Factory in 2011 for a 60% stake in the business.
Gail’s is now set to open another site in Blackheath, south London within the next few weeks.
British Baker has approached Gail’s Bakery for comment on this decision and is awaiting a reply.