Signature Restaurants, the group that owns Belgo restaurants and the upmarket Ivy, is set to be taken over by its management.

The firm's chairman Luke Johnson is leading the takeover bid, which values the company at �24.7m ($38.8m).

Independent directors at Signature have recommended that shareholders back the deal.

Last week Signature announced a fall in profits and said it did not anticipate much of recovery in the coming financial year.

Struggling

Signature owns the Strada pizza chain and the Belgo and Bierodrome Belgian-themed venues.

It also owns a number of up-market restaurants including The Ivy, Le Caprice and J Sheekey.

But the group has seen sales and profits fall over the past couple of years.

The situation was made worse by the events of 11 September last year which led to drop in the number of tourists visiting London.

The group has been forced to take a number of cost-cutting measures, including closing three Belgo outlets and three Bierodrome bars.

Snapped up

As well as Luke Johnson, Signature chief executive Andrew Bassadone and finance director Nicholas Fiddler are also behind the bid.

The deal offers 60 pence per Signature share, which represents a 30% premium to Monday's closing price of 46p.

A new company, Pinco 1771, has been formed for the purpose of the takeover bid and it said it already had undertakings to accept the offer from about 20% of the share capital.