UK venture capital firm Octopus Investments has lost its £6m (€6.7m) equity in Smollensky’s Bar & Grill after the restaurant chain was put into insolvency and was partly acquired by a another private equity-backed group.

Octopus, which acquired Smollensky's in a £12m deal in September last year, said it had taken the decision not to invest further funds into the company due to poor market conditions.