22 February 2018: 2018 has already seen a number of high-profile restaurant insolvencies hit the headline with Jamie’s Italian, Prezzo, Byron Burger, Square Pie and EAT all encountering problems. Perhaps this should not be a surprise given that the number of restaurant businesses entering an insolvency process last year increased by 20% according to data published by the Insolvency Service. It does not take a crystal ball to predict that figure increasing this year.
There has never been more competition on the High Street for a diner’s money given the vast number of different outlets now open. In addition, food price inflation, higher wage bills and rising rents and business rates mean operating a restaurant (small or large) is incredibly challenging. Even the biggest names are not immune from the financial pressures of the restaurant business.
Most of the recent high-profile restaurant insolvencies to be reported upon have involved the business restructuring its operations or its debts via administration or a creditors’ voluntary arrangement. These are deemed to be rescue options with a view to returning the business to profitability rather than terminal procedures. BRI Business Recovery and Insolvency have assisted a number of restaurants and restaurant owners over the years, with the most recent assignment being to assist in the restructure of the Meatcure restaurant chain.
Taking early advice is absolutely key to maximising the options which might be available to save a business that is experiencing financial difficulties. For a free, no obligation initial discussion please contact any of the BRI management team, who will be more than happy to provide you with practical and impartial advice tailored to your specific needs.