Bridgepoint eyes sale of stake in Japanese restaurant chain Itsu

The private equity backer of Itsu, the Japanese casual dining chain and grocery supplier, is preparing to sell its stake as the company's founder plots an ambitious plan to grow annual sales to over £500m.

Sky News has learnt that Bridgepoint, which acquired a minority interest in Itsu in 2021, is lining up Goldman Sachs to advise on an auction of its holding.

City sources said that a process was expected to kick off within months, with Itsu founder Julian Metcalfe keen to attract a major investor capable of accelerating the brand's international growth.

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Bridgepoint's investment five years ago saw it reunited with Mr Metcalfe, after their partnership helped grow the sandwich chain Pret a Manger into one of Britain's biggest fast food chains.

In results published at Companies House this week, Itsu Group achieved record revenues of £201m, with sales up 14.1% on the previous year.

Pre-tax profits of nearly £4m came a year after the company reported a loss of £6.9m.

Its grocery arm saw particularly impressive growth, with sales up 33% after a strong pipeline of new product development.

In addition to its home market, the company also saw healthy grocery sales in new markets such as Ireland, Germany, the Netherlands and Spain.

Itsu's restaurants arm was more subdued, with revenue growth of 2.8%, which the company said was a reflection of customer spending and high street footfall pressures.

The company has refocused its pipeline of new stores on locations with a high density of workers in major urban areas.

"Our grocery business enjoys year after year of record growth as customers seek out value and quality, with a global partner now able to invest in the company taking on the Bridgepoint holding.

"I look forward to ensuring our sales pass the £500m mark soon.

"Despite endless headwinds I congratulate our entire retail team.

"Itsu on the UK high street is doing well with strong sales and growing customer loyalty."

Bridgepoint's investment in Itsu in 2021 came less than a year after the company secured approval from creditors for a company voluntary arrangement (CVA) - an insolvency mechanism allowing struggling companies to restructure and reduce their financial liabilities such as rents and bank debt.

As part of that process, Itsu closed two of its 77 UK outlets and agreed rent cuts at the majority of the remaining sites.

The CVA, like many others in the sector, came during the COVID pandemic.

Bridgepoint's original investment was made at a valuation of approximately £100m, with the private equity firm and Mr Metcalfe now said to be confident of achieving a much higher price tag from a stake sale.

Bridgepoint declined to comment.

(c) Sky News 2026: Bridgepoint eyes sale of stake in Japanese restaurant chain Itsu