Mon, 27 Jun 2016 | ADMINISTRATION
The owner of UK restaurant chain Red Hot World Buffet has indicated that the distressed business is to enter administration.
Bolton-based Red Hot World Buffet owner Passepartout Ltd has officially applied to the High Court, asking to be placed into administration, signalling that it has been unable to pay its creditors for outstanding debts. As a result, insolvency companies have been asked to consider helping the organisation restructure its finances and to find possible solutions for the future of the business.
Passepartout Ltd owns five Red Hot World Buffet restaurants in Cardiff, Leeds, Leicester, Liverpool and Manchester. However, the group suffered a blow when its reputation was damaged after the Liverpool restaurant was forced to close temporarily due to hygiene issues caused by mice. Its finances have suffered as a result. A recent board meeting then revealed that the company is no longer able to pay its debts.
The minutes revealed the full picture: “The chairman reported that the meeting had been convened in light of the company’s current financial position, details of which have been minuted at previous board meetings. In light of the company’s current financial position, the directors concluded that the company is unable to pay its debts.”
A spokesperson for an insolvency company called in by Passepartout Ltd said: “A number of offers for sites have been received from trade competitors and these are currently being considered. The group continues to trade as normal with the support of its loyal employees across the Red Hot World Buffet operations.”
The spokesperson went on to add that the company boasts a portfolio of A3 restaurants that would be very appealing for buyers looking to expand their businesses. Insolvency group FRP Advisory is currently fielding interest from potential buyers.
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