Hospitality


BrewDog Sold For £33m

in A guide for redundant employees in administration or insolvency situations Hospitality News Retail What Does Going Into Administration Mean?

Update 27th March Tilray Brands from the US has bought the firm for £33m it has been reported.  The company owed a staggering £550m to its creditors it has been revealed by the administrators official report. ___________ BrewDog, the Scottish craft brewer best known for brands such as Punk IPA, has confirmed it has appointed AlixPartners to run a “structured and competitive” process to assess the business’s next phase of investment. This move that has fuelled speculation the company could be sold, or potentially broken up into separate parts. In a statement, BrewDog said the decision follows “a year of decisive action in 2025” focused on cost control and operating efficiencies, describing the appointment as a “deliberate and disciplined step” aimed at strengthening the long-term future of the brand and its operations. The company also stressed that bars and breweries will continue to operate as normal while options are evaluated. AlixPartners is widely recognised for its work in, turnaround and restructuring.  It is often engaged by businesses that are under pressure or looking to make significant changes quickly. Its reported that the process could explore multiple outcomes, from attracting fresh investment to an outright sale, with some commentary suggesting bidders may be interested in different elements of the group (for example, the brewing/brands side and the bar estate) if a break-up delivers better value than a single transaction. For customers and employees, BrewDog’s message is reassurance: day-to-day operations continue and “no decisions have been made”. For stakeholders, the key point is that this is now a structured process rather than informal market soundings — meaning the company is likely to move at pace to test appetite and options. This announcement is another sign of how hard the hospitality markets remain, with input costs, wage pressures and cautious spending continuing to squeeze margins across the sector. If your business is facing similar pressures and you are worried about trading or paying creditors then it is vital to act early.  This makes any sudden issues more manageable.

Read
BrewDog Sold For £33m

Nottingham Belfry Hotel and Spa Goes Into Administration

in A guide for redundant employees in administration or insolvency situations Hospitality What Does Going Into Administration Mean?

The Nottingham Belfry Hotel and Spa has entered administration, with Anthony Simmons and Ian Corfield of FRP Advisory appointed as joint administrators.The hotel remains open and continues to trade while the administration process is ongoing. All existing guest bookings and event reservations will be honoured, providing reassurance to customers with forthcoming stays or functions.All employees have been retained at this stage. Around 120 staff were employed at the end of 2024, and the preservation of jobs will be a key consideration as the process progresses.The administrators are actively seeking a buyer for the business, with the aim of securing a sale that allows the hotel to continue operating as a going concern and protects employment in the longer term.The disposal process is being managed by Christie & Co, a specialist commercial property agent. A deadline of 26 January 2026 has reportedly been set for interested parties to submit offers, indicating that the sale process is moving forward at pace.The administrators have described the hotel as having a strong reputation and a well-established presence in the regional hospitality market. The site benefits from extensive accommodation and a full spa facility, and continues to receive positive customer feedback, including high review ratings for service, facilities and staff.This administration follows a number of high-profile insolvencies across the UK hospitality and leisure sectors. Rising costs, changing consumer behaviour and wider economic pressures continue to impact businesses across the industry, even those with strong brands and loyal customer bases.

Read
Nottingham Belfry Hotel and Spa Goes Into Administration

Insolvency advice for Pubs, Bars, Restaurants and Hotels

in Hospitality

My public house is under pressure  I can't pay HMRC or the business rates. How can I keep my pub open? We know that the licensed trade and those that work within it have lost a lot of money due to the pandemic and are struggling to make it back.  Please see this page for more information on help for business generally.We have a great deal of experience helping businesses in the hospitality trade, and others within the licensed trade rescue their businesses.We also have a page that helps employers deal with employees in this situation.We have brought out our guide in preparation for tough times ahead for those in the hospitality trade.Read our guide: rescue-pub-or-hotelThe guide covers: Is my pub or hotel company insolvent? How can a pub get a time to pay deal with HMRC for PAYE and VAT? What is a Company Voluntary Arrangement and why is it a great rescue tool How to cut costs in your business How to deal with a winding up petition from HMRCAnd more!

Read
Insolvency advice for Pubs, Bars, Restaurants and Hotels

Options for an Insolvent Pub

in Hospitality

See below some advice given on our online chat regarding an insolvent pub  I hope I was able to give you some options today.We discussed the fact that the company has two pubs in [town], one we will call “large pub” the other “small pub”. Both are tenanted pubs with Company 2.The large pub tenancy ends in May, you need to provide 6 months notice and have yet to do so. The small pub is reasonably profitable and you wish to retain this if possible. The company is insolvent and has tax liabilities it cannot meet. You are not taking salary and are struggling to survive financially as a result.We discussed Option A; close the large pub, make employees redundant and hand the keys back to Company 2, this will cause Company 2 to look at the issues and it may decided to end the lease/tenancy of the small pub as a result. Or it may not. This action would straight away cut costs.Option B is to place the company into creditors voluntary liquidation. This would end both leases/tenancy agreements when the liquidator is appointed by creditors. But it also writes off the debts.Then you would seek to retain the small pub under a new agreement as a sole trader. Do NOT trade as a partnership in case this fails in future, this could lead to BOTH of you being made bankrupt as partners. So liquidation would bring all the debts and the business to an end.The employees would get paid redundancy by the RPO – redundancy payments office which is a government safety net. 

Read
Options for an Insolvent Pub

Prezzo’s CVA strategy appears to be working

in Hospitality News What is a CVA (Company Voluntary Arrangement)?

I recently read an article in The Caterer , indicating that Prezzo is doing the right thing regarding its CVA being approved by its creditors - Their losses have been halved. It left me thinking, what should directors do once a CVA has been approved?  Well, quite frankly, they should follow Prezzo's example.  Yes, Prezzo is a big chain of restaurants but, what the directors are doing, in reality, any director can do in some form or another.  So, what is it that is being done?  In my view there are 3 fundamental things:Change Change ChangeOk, that is a bit flippant but lets look at it more closely.After the CVA was agreed Prezzo changed the management team by appointing Executive Chairwoman, Karen Jones. In small businesses it may not be that easy to change in this way, but management really should consider changing their structure.  Perhaps responsiblities could change, maybe someone should be let go or even promoted? Change the strategy or focus on fundamentals. Karen Jones said the company was now focused on ensuring customers left wanting to return after a period where a “strategy of new openings and new concepts distracted from its mission of hospitality”.  In hindsight that seems so obvious, a returning customer is worth so much more as you do not have to spend loads of money to get them back. Change your financial controls. The company's directors will need advance notice of any problems and the rigour of the process means that they must have good management information.  Poor financial records is the principal reason that companies become insolvent.Investing in the future is the next big thing.  Finding new money to carry out change can be a challenge.  Debt for equity swaps can work in larger businesses where the lenders see an opportunity down the road. Debt relief can increase working capital by improving cashflow.  In smaller businesses, creditors like to see that directors and stakeholders are putting money in.  So, maybe sell some assets or try to raise other sources of finance.  Lenders will lend to companies in a CVA as long as they are happy that the changes mentioned above are happening and any forecast is realistic. If you want to know how we can help businesses then give us a call on  0800 970539

Read
Prezzo’s CVA strategy appears to be working

Leon serves up a CVA

in A guide for redundant employees in administration or insolvency situations Hospitality

1 December 2020It has been reported that healthy restaurant chain, Leon, has served its creditors details of a restructuring plan. Included in the plan is:A multimillion pound investment from shareholders to secure its future 4 restaurants switching to a rent-free model The majority of restaurants switching to turnover-based rentsThe plan is proposed to last just 2 years, in oppose to the typical 3 year period.23 November 2020Restaurant chain Leon becomes the latest to explore an insolvency mechanism in order to try and secure its future, amid challenges brought on from the coronavirus pandemic, according to Sky News.Leon is heard to be drawing up proposals with advisers, for a company voluntary arrangement. This would involve seeking rent cuts from landlords and could involve some site closures for those not performing. Jobs are also at risk – though the implications for jobs and any set figures are unknown as it stands.It was just earlier in May that Quantuma were reported to be drafted in to help the chain secure rent cuts from landlords.The company, which has gone on to become a key player in the healthy fast-food sector, was set up in 2004 by Mr Dimbleby, John Vincent and chef, Allegra McEvedy. The menu is inspired from the founders; Mediterranean roots- mixing its flavours, variety and natural healthiness.It operates from more than 75 sites across the UK, mainly in busy city centres and transport hubs, as well as in Washington DC, Oslo, Amsterdam, Dublin, Rotterdam and Gran Canaria.It has faced difficulty, as have many other players in the fast-food market, particularly due to the slump in commuter numbers, which were a key target consumer group.

Read
Leon serves up a CVA