Eateries on menu as Howies put up for sale

THE owner of a well-known Edinburgh restaurant chain is to sell up only four years after taking over the business - as he takes a hit from a downturn for a second time.

All four Howies restaurants in the Capital, as well as one in Aberdeen, have been put up for sale by entrepreneur Cameron McColl, who took over the business from founder David Scott in 2007 following a 2 million management buy-out.

He is expected to take a considerable hit as a result of buying the business during the height of the economic boom then selling in the midst of a downturn.

It will be the second time he has suffered from an industry slump, having built up Dalkeith-based computer memory firm Memory Corporation into a stock market giant worth 360m during the technology boom of the 1990s before quitting in 1996 after its value slumped to 16.6m following the slowdown.

The restaurants are being sold at a combined value of offers over 485,000, although bids for individual restaurants are also being considered.

One restaurant industry insider said: "If he is getting out at this time then it shows how tough things are. If it was doing really well I would think he would be carrying on."

Howies was founded by David Howie Scott and started off as a single restaurant in St Leonard's Street, before becoming something of an institution with eateries in St Andrews, Dundee and Aberdeen.

The flagship Victoria Street restaurant is on the market at offers over 170,000, while Waterloo Place is 130,000. Selling agents are looking for 75,000 for the Bruntsfield Place eatery and the Alva Street outlet is available at 60,000.

Malcolm Duck, chairman of the Edinburgh Restaurateurs Association, said: "David Scott set it up - he was a great guy and had great vision, and it is now a great brand. They had the Edinburgh market pinned with the right food at the right prices, so it's a shame it is being sold.

"It is a well-known name, a good product and it is in good locations so I don't see why it can't be a brand that continues.

"It's a tough market but there are people looking at Edinburgh to come in. It's a hard place to be but if you do well you can do very well."

Mr McColl, who remains heavily involved in the technology and energy sectors, completed the management buy-out of Howies in 2007, although Mr Scott retained the freeholds until he sold his remaining shares in 2009.

Kath Byrnes, operations director at Howies, said: "The current owners now spend most of their time out of the UK and are exploring the possibility of selling the business."

She added: "The availability of these five units represents a superb opportunity."