Handmade Burger Co flips into administration
The company was originally founded in Birmingham in 2006 by Chris Sargeant and his two brothers but this was the second time the chain had been in administration in two years. The first time was in 2017 when it was brought out but not before nine branches had closed.
It caps a bad year for the casual dining industry which has collectively faced the double challenge of rising overheads and wages with falling sales.
We’ve previously written about the challenges facing restaurants and in 2019, the UK’s top 100 restaurants suffered a collective £93 million loss.
Joint administrator David Griffiths said: “The casual dining market in the UK has experienced significant challenges over the last four years, largely as a result of overcapacity in the sector, which has resulted in a significant number of insolvencies.
“Sales at Handmade Burger Co. restaurants have almost halved during this period, which has proved to be unsustainable.
“It is disappointing that circumstances have meant that a sale of the business has not been possible in this case, but our focus now should be on those employees affected by this difficult news.”
Former employees in Edinburgh were all offered guaranteed interviews by the All Bar One chain for its venues in the city.
In the face of tightening conditions and access to capital, some restaurants are trying novel forms of funding including the controversial Burrito bond issued by Chilango.
Jamie’s Italian closed 22 branches in 2019 with 1,300 jobs lost and another 600 branches of restaurants including sites operated by Byron, Prezzo, Carluccio’s and the Gourmet Burger Kitchen closed through the administration route or entered into Company Voluntary Arrangements (CVAs).
The business storm clouds may lift and 2020 might turn into a bumper year for business. Then again, it might not.
If you are relying on fate to take a hand to bring your business back into profitability, get active in your own rescue and contact us today.
One of our expert advisors will contact you to arrange a free initial consultation to allow them to get a broader understanding of the issues facing your business right now and in the short term.
They will then work with you to come up with a strategy to rebuild positively and get your company back in the black.