Clapham House, the AIM-listed restaurant operator, has sold the Bombay Bicycle Club (BBC) chain for £4.4 million to Gourmet Restaurants, the company that owns Tiffinbites, a rival Indian restaurant chain.

Gourmet Restaurants, which is not connected to Gourmet Holdings, the Amato and Richoux cafe operator, intends to use the BBC purchase as the platform for consolidation of the fragmented Indian restaurant market.

Jamal Hirani, the Gourmet founder and chief executive, has four Tiffinbites sites in London and recently acquired the Vama restaurant in Chelsea. It has closed Tiffinbites sites in Soho, Cannon Street and at the Bullring in Birmingham.

Clapham, which was advised in the sale process by Coffer Corporate Leisure, is expected to use the proceeds to reignite the development of its highly regarded Gourmet Burger Kitchen (GBK) chain.

In December, the group accompanied a profit warning with an announcement that it planned to slow down the roll-out of GBK due to the tightening economic conditions.

Clapham bought the London-based BBC business four years ago for up to £2.42 million when it consisted of a restaurant in Balham plus five home delivery outlets in Fulham, Wimbledon, Tooting, Putney and Battersea.

Today, it has three restaurants - it has opened outlets in Holland Park and Hampstead - and 15 delivery kitchens.

David Page, the Clapham chairman, admitted at the end of last month that the company frequently fielded interest in its brands. "Over the years we have received multiple offers for every brand we have. We said when we floated that we'd sell at the right time."

Clapham itself has also been the subject of bid speculation as Capricorn Ventures International, the owner of the Nando’s chicken chain, has built a stake of 25 per cent. Gondola Group, the PizzaExpress and ASK operator, has also been tipped as a suitor.

This morning, Paul Campbell, the group's chief executive, said: "'Whilst we are sad to see the Bombay Bicycle Club leave our portfolio, it is predominantly a home delivery business with a different pricing point and a longer period for return on capital than our other brands.

"We believe that at the current time it is appropriate to strengthen our balance sheet and focus resources on our pure restaurant businesses, Gourmet Burger Kitchen, Tootsies and The Real Greek."

The sale of BBC, which is also believed to have attracted interest from AIM-listed Indian Restaurants Group and Sanjay Mahju's Harlequin Restaurants, will force Clapham to take a £1.9 million hit against the carrying value of the goodwill.

For the year to March 30, BBC generated losses before tax of £484,000 and had net assets before debt of £2.42 million.

Analysts welcomed the deal, arguing that the reduction in debt £18 million to £14 million gave it greater flexibility to roll out its higher-return GBK brand.

Shares of Clapham House added 9p to 89p - a rise of more than 11 per cent - on news of the deal.

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