Insolvency & Rescue Solutions for Restaurants
Restaurants are disappearing fast and under pressure as never before. Small independents and large chains are becoming insolvent at an alarming rate. At the start of the year, research in The Evening Standard found more than 800 chains restaurants, bars, and coffee shops had closed since the start of the pandemic.
Here at Company Debt, we have significant experience in both closing and restructuring restaurants. Get in touch for a free, no-obligation discussion about your situation with one of our licensed insolvency practitioners.
Restaurants Pressure Points
What are the Reasons for Restaurant Insolvency?
Open and closing, spacing out tables, and reducing the number of customers as well as reluctance to dine out have led to a sector that remains in a perilous position.
The data also showed that when administrations and Company Voluntary Arrangements are included, chains with 6231 outlets have been affected.
The restaurant sector had been highly popular with the private equity sector, but notably, failures began kicking in even pre-pandemic – these included steak chain Hawksmoor, Vietnamese chain Pho, and Sushi brand Yo! Other well-known chain failures included Frankie & Benny’s, Zizzi, and Prezzo.
Pizza Express, a UK staple, has to date made some 97 closures since the start of 2020 and is operating a Company Voluntary Arrangement for these as it seeks to pay creditors and keep some 375 other branches open for business.
While restaurants and pubs did benefit from government grants and loans, many businesses remain vulnerable and consumers who are willing to dine out, now have around 10% fewer places to choose from. In particular, the ‘casual dining sector has been the hardest hit.
However, although the pandemic has been a dominant factor in reshaping the sector, commentators note that some chains were guilty of expanding too quickly and that there was already overcapacity. Given that more failures are likely, it appears that there will be a more cautious approach in the future.
Help for your insolvent restaurant
If your restaurant is experiencing difficulties, you should not delay seeking advice. Business owners need to address problems and if they put this off, then their options become more limited.
Company Debt provides expert support and advice on the next steps for an insolvent business, whether rescue, recovery, or liquidation.
Knowledge – Insight – Solutions
We are fully licensed and accredited insolvency practitioners based in north London, and with decades of combined partner experience in helping directors find positive solutions to business challenges.
Our goal is first to understand your situation as fully as we can, and then to explain the range of options available to you.
We focus on practical advice, without jargon. We practice total transparency around costs and fee structures. Our wish is to support you as fully as possible so that you can emerge from this situation in the best possible situation.
As a first step, simply book in a call with one of our team to learn more about our approach, and to take advantage of a fee consultation that carries no obligation.
Book My Consultation
If you need an experienced insolvency practitioner or business rescue specialist, seek advice now.
- Your free consultation will be led by one of our experienced London insolvency practitioners
- You can speak via phone, online meeting or in person so that we can listen carefully to the facts about your situation
- The team will provide a preliminary view of the likely best outcome, proposed strategy, and the likely cost
- We specialise in helping limited comany directors needing immediate professional debt advice