Jamie Oliver's business venture Barbecoa with the American barbeque "expert" Adam Perry Lang, was put into administration yesterday with the St Pauls branch bought back via a pre-pack administration. This has meant the loss of 80 jobs
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It seems that huge increases in business rates have been the main contributor to the firm's problems with some restaurants facing a 154% rise in costs. Of course, all businesses in desirable areas have been hit with large rates increases and many businesses in the casual dining sector like Byron Burgers and Eat have been closing outlets. Other problems facing the sector have been the growth of home deliveries.
Jamie's restaurant's empire is under pressure as Jamie's Italian is seeking the support of creditors for a company voluntary arrangement as it owes its creditors a total of £71m.
It does seem that Jamie's food empire grew too quickly which has meant that standards have slipped as demonstrated by an increase in poor reviews. This has lead to a fall in bookings. Already faced with rising costs in wages, food and property costs the business model became unsustainable.
Jamie's own brand is still very valuable and it is likely he will recover with a slimmed down chain of restaurants.