Well-known restaurants restructure and others go into administration this week
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Franco Manca
An Italian pizza chain is entering a Company Voluntary Arrangement (CVA) and is expected to close several of its 68 UK sites with 41 in London alone.
France Marca was opened in Brixton Market in 2008 and was purchased by a private equity investment firm Toridoll in 2023. They confirmed the move in a statement to the Tokyo Stock Exchange confirming that they intend to close 16 restaurants immediately with the loss of 225 positions.
The statement said: “In July 2023, the company acquired Fulham, which operates pizza brand Franco Manca and the Greek restaurant brand The Real Greek in the UK.
“Since acquisition, we have completed various initiatives however in recent years, high levels of inflation in the UK, driven by rising energy and food prices together with increases in labour costs resulting from rises in the minimum wage have created a more challenging operating environment for the hospitality industry than initially anticipated.
“Responding to the rapid changes in the external environment has taken time. As a result a review of the business structure became an urgent issue. In light of these circumstances, Fulham has been examining business restructuring.
“As a result it has been decided that Franco Manca will implement a restructuring of its real estate lease agreements and related arrangements by utilising the UK Company Voluntary Arrangement (CVA).
“The CVA is intended to primarily reduce fixed costs by revising the terms of real estate lease agreements for unprofitable stores and optimising the store portfolio.”
Further discussions are ongoing regarding the future of The Real Greek restaurant.
Meatliquor
A well-known UK restaurant chain has gone into administration closing five of their eight sites.
Meatliquor was a specific burger and beer bar and retains two sites in Oxford Circus and East Dulwich in London.
Founder Scott Collins said: “On top of VAT, rates, beef and energy costs, we’ve now got a new war creating uncertainty and more Tube strikes to deal with. We’re in the same position as a lot of others in the industry and we’re just getting ahead of things before we’re forced to.”
Additionally the Dartmouth Arms pub in Forest Hill was also part of their estate and has also closed.
Davis Wright Haulage
A Peterborough based haulage business has filed a Notice of Intention to appoint administrators (NOI).
Davis-Wright is a family-led firm that was launched in 2020 and specialises in the construction sector and provides aggregate transport, limestone, commercial and construction haulage as well as muckaway services and plant hire.
It has an operating licence for 12 trucks and two trailers operating from depots in Bourne, Stamford, Grantham and Boston in Lincolnshire.
AA Carpets and Furnishings
A family-run Cumbrian business that had been operating for three decades has closed and gone into voluntary liquidation.
AA Carpets and Furnishings based in Workington issued a brief statement saying: “Sorry to share that AA Carpets has entered insolvency.
“We recognise that this will impact our customers, partners and employees and we sincerely apologise for any disruption caused. We’re working with the appointed insolvency practitioners and will share further information as soon as we can. Thank you for your patience and understanding during this difficult time.”
The company moved into a new showroom in March 2024 into a former Wilko premises at 22,000 sq feet and also stocked sofa sets, beds, dining room and bedroom furniture.
No matter what line of business you operate in, these could be a nervous few weeks and months ahead.
Be proactive and take the time now to get in touch with us to arrange a free initial consultation.
Our advisors will be able to talk through your current situation and your plans for the business and let you know what options you have available that you might not have considered.
The sooner you contact us, the sooner we can begin to work together and make your plans a reality – even sooner.