Administrators have completed the sale of the Handmade Burger Company, after it collapsed earlier this month.
The sale has saved over 500 jobs, and allowed 20 restaurants to continue operating.
What happened after the Handmade Burger Company entered administration?
Administrators from Leonard Curtis were appointed to both Sargeant Partnership Limited and the Handmade Burger Company LLP as they operate as one singular business.
It was claimed that the company collapsed due to the competitiveness of the casual dining market, as well as rising rent, rates and labour costs. However, until recently, the Handmade Burger Company seemed very confident about adding sites to their portfolio.
On the appointment of the administrators, nine sites closed down. However, all the other venues continued to trade.
Joint administrator, Julien Irving, stated:
“Since our appointment on 6 July we have worked hard to secure the most favourable outcome for all creditors.”
“Despite being unable to propose a CVA, we have since managed to secure a buyer for the business and are delighted that this positive outcome has been achieved.”
The rescue deal:
The sale of this popular chain was announced two weeks after it entered administration.
The future of the 20 remaining restaurants have been secured to an unnamed buyer who is believed to be a private investor who runs several McDonalds franchises in the West Midlands.
Here is a complete list of the outlets that will continue to operate:
4. Brindley Place, Birmingham.
5. Bull Ring, Birmingham.
6. Deansgate, Manchester.
7. Kingston upon Hull.
11. Meadowhall, Sheffield.
12. Ocean Terminal, Edinburgh.
15. Silverburn, Glasgow.
18. St. Vincent Street, Glasgow.
19. Valley Centertainment, Sheffield.
What does this mean for Handmade Burger Company employees?
This sale ensured 530 jobs were saved, but the 163 redundancies from the original nine stores will not be retracted as their venue will not reopen.
However, from this point onward "no restaurants will be closing and no jobs will be lost" according to a company spokeswoman.
Plans are still unsure for branches that were due to open before the company entered administration, such as Telford, but the future looks bright for the company as a whole. There may be some structural changes, however, to ensure viability.
If you are concerned about insolvency or entering administration, talk to one of our experts today.