Tue, 18 Oct 2022 | ADMINISTRATION
A vegan burger chain with restaurants in Manchester and Liverpool has fallen into administration after being hit by issues including rising costs and labour shortages. Frost Burgers ceased trading last month and administrators will now seek buyers for the firm’s leases and assets, which include ready-made commercial kitchens.
Frost Burgers was founded in 2018 by social media influencer Monami Frost and offered an entirely plant-based menu, including burgers, fries, milkshakes and a range of sides. The company reported turnover of £515,811 in 2021 and had £137,427 in fixed assets and £3,278 in current assets.
However, the company ultimately succumbed to the range of pressures currently impacting the UK’s restaurant industry and wider hospitality sector and appointed Paul Stanley and Jason Greenhalgh of Begbies Traynor as joint administrators on October 7 2022.
A recent Red Flag Alert from Begbies Traynor stated that 1,961 restaurants and bars across the North West were operating under significant financial distress. Joint administrator and Begbies Traynor North West Regional Managing Partner Paul Stanley has warned that more restaurants are likely to enter administration over the coming months.
Paul Stanley said: "Despite gaining an excellent reputation, Frost Burgers has become just one of the many businesses within the hospitality sector that have experienced financial distress. Restaurants in particular, are struggling to afford raw ingredients and many are struggling with their energy bills."
"The hospitality sector is also taking a huge hit from labour shortages as well as debts accrued over lockdowns, including bounce back loans. It is likely that more restaurants will find themselves in a similar position as we progress towards the end of 2022."
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