Why Directors Delay Getting Advice

​Simmons, the London cocktail chain with 20 venues, has gone into administration after saying that it would close at least four sites as it struggled with increased costs and pressures facing customers. In a statement founder Nick Campbell said “As part of the process, we’ve taken the tough decision to exit four leases, allowing management to focus resources on our strongest performing venues,”. The bar group,has appointed advisory firm Kroll to oversee the administration, company filings show. In its latest audited accounts, the company posted a loss of £749,000 for the year to end March 2024, reversing a profit of just under £2m the previous year.The move adds Simmons to a growing number of hospitality groups that have failed or , entered administration or cut back operations as they face ballooning costs and depressed consumer demand. That has included sharp hikes to employers’ National Insurance Contributions introduced in April, as well as reduced relief on business rates.The British Beer and Pub Association (BBPA) has estimated that 378 pubs will close this year across England, Wales and Scotland – more than one per day on average – amounting to more than 5,600 job losses. Kate Nicholls, chair of UK Hospitality, told City AM who broke the story “Sadly the news of further closures and business failures is all too common at the moment.“Our last survey showed that half of London hospitality businesses are operating at or below break even – up from a third since the Budget. That’s because the costs of doing business – rent, rates, employment – are much higher in the Capital but we have yet to see footfall and visitor numbers recover to pre Covid levels. “Put simply the money coming through the front door is not enough to cover costs and as a result businesses are running out of road – they are being literally taxed out.”