Restaurant Group PLC (LSE:RTN) (TRG), the owner of Wagamama and other hospitality brands, is facing criticism from another activist investor ahead of its annual general meeting on Tuesday.
TRM Capital, a Florida-based investment company, wrote to TRG’s chairman, Ken Hanna, and chief executive, Andy Hornby, to propose selling off the group’s brands bar Wagamama.
Derek Vago, a strategic advisor at TMR Capital, argued “the future is not as a PLC” and instead should be focused on growing Wagamama so it can be made private.
The comments mirror those made by fellow activist investor, Irenic Capital Management, which argued that TRG brands such as Frankie & Benny’s and Chiquito should be disposed of.
Irenic also made it clear it was unsupportive of the group’s management team, in particular the remuneration policy that saw Hornby take home £792,000 plus around £700,000 in shares last year.
TRG's second-largest shareholder, Oasis Management, which owns 12.3% of the company according to MarketScreener, has also expressed displeasure with the hospitality firm’s management.
Last month, the Hong Kong private equity firm urged shareholders to reject the two remuneration items at the annual general meeting.
Any decision for the director’s remuneration report is “non-binding”, according to TRG’s latest AGM notice.
Oasis Management also wants shareholders to vote against the re-election of Zoe Morgan, remuneration committee chairman and independent non-executive director.
TRG’s largest shareholder Columbia Threadneedle, which owns 19% of the company, still supports the management team arguing leadership has “successfully navigated the exceptionally tough industry backdrop”.