Embattled Dave & Buster’s restaurant, arcade chain turns to private equity amid coronavirus woes

389

Private equity firms are reportedly in talks with embattled restaurant and video game arcade chain Dave & Buster’s in the wake of the business shuttering its outlets amid the coronavirus crisis.

The US-listed business is negotiating with buyout houses over a private investment in public equity (PIPE) stake purchase according to Reuters, which cited unnamed people it said were familiar with the matter.

KKR picked up a 10.7% minority stake in the company in January, causing the company’s share price to rise to almost $49 each.

Dave & Buster’s is now trading at about $10 per share after a slump in its value from late February amid the global Covid-19 pandemic.

The business was owned by private equity house Wellspring Management between 2005 and 2010, when it was bought by Oak Hill Capital Partners.

Oak Hill listed Dave & Buster’s on the Nasdaq stock exchange in 2014 at an offering price of $16 to $18 per share.

Copyright © 2020 AltAssets

Get the latest PE News & Research delivered to your inbox every morning