Pizza Hut purchased but closes venues and Manchester Pride enters administration
As the clocks prepare to go back and give us an extra hour this weekend, we hope you might use some of it to catch up on all the interesting and important business & insolvency news stories you might have missed from the past seven days.
So if you want to know more about the latest business insolvency statistics from September; the latest changes to business energy bills; why HMRC are restarting Direct Recovery of Debts (RDR); Why the new Covid Repayment Amnesty isn’t an amnesty at all; what personal risks directors are running from an overdrawn directors’ loan account and how an MVL unlocks tax efficiency for directors – you can read all these stories and more at our advice centre page.
Pizza Hut
One of the UK’s most recogniseable restaurant outlets has been purchased in a pre-pack administration deal that sees 64 restaurants secured.
Pizza Hut UK announced that a further 75 restaurants across the country would close with the loss of 1,200 positions.
Pizza Hut UK is the name of the purchasing company that has acquired the restaurants from DC London Pie Ltd which was the franchisee of Pizza Hut dine-in restaurants.
A press release was issued that said: “We are pleased to secure the continuation of 64 sites to safeguard our guest experience and protect the associated jobs. Approximately 2,259 team members will transfer to the new Yum! Equity business under TUPE legislation including above-restaurant leaders and support teams.”
The deal happened six weeks after HMRC had filed a winding-up petition against the company. The applicant behind the filing is a subsidiary of Yum! Brands in America which holds a charge over the business.
Manchester Pride
The organisers of one of the biggest Gay festivals in the country is going into voluntary liquidation.
Manchester Pride said it has made the decision with immense sadness but added it was no longer financially viable citing a combination of rising costs, declining ticket sales and an “ambitious refresh” of the festival format aimed to challenge these issues along with an unsuccessful bid to hose Euro Pride.
They said: “We were proactive and determined to identify solutions to the financial issues. We’ve been actively working with several partners, including legal and financial advisors, to do everything we could to find a positive solution.”
The festival was held at the end of August to celebrate LGBTQ+ culture and since the end of the pandemic has attracted over a quarter of a million visitors to the city and had an estimated £104.8 million of economic impact.
The volunteer Board of Trustees said its staff team will be made redundant.
Community Transport For Nottingham
A Nottinghamshire bus operator that runs more than 20 local services in the city and surrounding country has proposed a Company Voluntary Arrangement (CVA) to continue trading and preserve the jobs of 75 employees.
Barry Allitt, Managing Director of Community Transport for Nottingham (CT4N), said they had considered ceasing trading and entering voluntary liquidation but believed it wasn’t in the best interests of staff and the wider community.
He said: “The CVA approach aims to maximise returns to creditors while safeguarding the future of the organisation. We remain committed to working collaboratively with all stakeholders throughout this process and are confident that the CVA will provide a stable foundation for future growth and continued service delivery.”
that their principal creditor had already indicated their support for the arrangement and vote to be taken on October 30th when 75% of creditors have to vote in favour.
Waterline Limited
One of the largest wholesale independent kitchen and bathroom distributors in the UK is going into voluntary liquidation.
Waterline had been operating for nearly 80 years and was based in Newport Pagnell near Milton Keynes. They confirmed that more than 100 positions have been made redundant as a result.
Directors said that the after-effects of the Covid-19 pandemic, increasing interest rates and the cost-of-living crisis had caused a significant reduction in consumer spending.
Shareholders had continued to support the business which became unviable and despite a search for new investment or a buyer, neither could be found.
A statement from the business said: “we are disappointed that a sale did not take place, despite reaching out to both industry and non-industry specific parties as part of our regulated process.
“A key driver for the board of Waterline was the safeguarding of jobs for employees with the aim of a going concern sale. However, despite their best efforts, the external factors, pressures in the economy and the sector specifically meant a buyer could not be found.
“Unfortunately, 105 redundancies have taken place with 15 staff members working to support the wind down of the business.”
Union Electric Steel
A steel company has announced the immediate closure of its only UK plant after it went into administration.
Union Electric Steel based in Gateshead were due to close operations in the Spring but after consulting on ending production at the site, decided to accelerate their exit from the UK.
The factory was originally the Davy Roll Company and had been making steel for more than 150 years before being acquired by Union Electric Steel in 1999. The owners are the Ampco-Pittsburgh Corporation based in America.
Sam Lyon, president of Union Electric Steel, said it was an extremely difficult decision and cited the challenges it had faced over recent years. These included unpredictable and high energy costs compared to competitors, lack of demand for the product and increased imports of rolls and flat rolled steel into Europe from low-cost countries.
Brett McBrayer, CEO of Ampco-Pittsburgh Corporation, said the company had accelerated its exit from the UK due to “the high costs of a wind-down closure along with the recent tariff volatility affecting demand and order timing.”
MAYK
A Bristol-based arts production company that has been performing around the world for 15 years has closed down, citing financial pressures.
MAYK had been operating since 2011 and also hosted a popular biennial festival of contemporary theatre and live performance called Mayfest.
Co-founders Kate Yedigaroff and Matthew Austing said: “It is with huge sadness that we announce the closure of MAYK.
“It’s the last thing we wanted to do, but we are left with no choice. It has become impossible to continue. The picture for the arts in this country is increasingly grim. Years of underinvestment have created a structural crisis that devalues culture at its core and is causing real damage. It needs fighting for: proper investment, imagination and care.
“We have worked tirelessly to adapt – reimagining as radically as possible, restructuring and fundraising – but the gap has simply become too wide. We can no longer make it work.”
The company took several steps to try to save itself over the past two years including cancelling next year’s Mayfest and laying off staff but were unable to rescue MAYK.
Coopers
A chain of hardware shops based in the East of England that has been operating for over 85 years has announced it is closing.
Coopers has branches across Norfolk and Suffolk with a head office in Beccles.
Commercial director Stuart Ruskin said the firm, like many other shops, had struggled to attract customers through the doors because of “how the High Street is today”.
“Bills were not getting paid, even online was struggling, so it’s just not working out anymore.
“We will sell what we can and then the doors will close and that will be the end – it’ll be a very sad day because our workers are not just colleagues, they are our friends.”
Mr Ruskin has worked for Coopers for nearly 30 years and said rising bills and wages had also played their part in the decision.
Braywick Heath Nurseries
A gardening social enterprise in Maidenhead, opened by Prince Charles in 1997, has announced plans to close for financial reasons.
Braywick Heath Nurseries and Garden Centre has spent the past 28 years providing employment to people with disabilities and other special educational and physical needs.
Founder Robin Pemberton said staff would be made redundant although he hoped the organisation could continue the work although a deal with one potential partner had fallen through.
He said: “With deep regret, the directors have decided to cease trading at the end of the year. The door is not closed yet, but it is closing, while the need for training and employment for those left behind is getting greater.”
Mr Pemberton started the not-for-profit enterprise in 1996 on a former council nurseries site, working with his own autistic son.
He said: “It’s been like pushing water uphill. Costs are going up, income is shrinking and we have lost some ground maintenance contracts. We are solvent today but we could soon be trading insolvently.
More than 1,000 people were supported at the centre and several have gone on to start their own gardening businesses.
Bistro Live Pre-Pack
A Milton Keynes based entertainment venue operator with locations in the city as well as in Nottingham and Leicester has been bought out of administration by new owners, preserving 100 positions.
Bistro Live was a recognised name in the hospitality industry with large venues for entertaining groups, events and parties.
They were significantly affected by the Covid-19 pandemic, facing mandatory closure for 18 months. Despite government support and internal cost-saving measures, it had accrued substantial debt during this period.
Although they rebuilt to an extent in subsequent years, the burden of pandemic-era debt remained a persistent challenge. Following a quieter summer trading period exacerbated by cost-of-living pressures, the business eventually ran out of cash.
Fred Harlow, Owner of new owners FM Hospitality, said: “We’re thrilled to be the successful purchaser. It’s business as usual for customers and the brilliant team and we’re looking forward to hosting many more years of amazing festive parties.”
Even though Halloween is on the horizon, there’s no need to be terrified about running out of time to restructure and rebuild your business this year!
Get in touch with us today to chat with one of our advisors about what options you’ve got on the table – usually more than you realise!
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