Jamie Oliver hit with a huge loss of £25 million as his Italian restaurant chain collapses. In addition, creditors also face a loss of £83 million.
44-year-old British chef, Jamie Oliver is facing some heavy loss. Oliver had appointed KPMG to administrate the process of insolvency since 21st May. The group operated 23 restaurants under Jamie’s Italian brand.
In addition, the company had been looking for a potential buyer.
Moreover, the group reported that Oliver had secured a loan of £18.3million for his restaurant empire. However, he was forced to shut them down.
In addition, The Times reported that creditors had invested £83million into the brand while the HSBC suffers the most as it had provided £39.4 million in the form of debt to the business.
Apparently, the British chef has paid the HSBC an amount of £4.7 million.
The insolvency process resulted in the loss of 1000 jobs. In addition, both Barbecoa steakhouse in London and Fifteen in Cornwall were closed with a total loss of 80 jobs.
Oliver had stated during the process, “I am deeply saddened by this outcome and would like to thank all of the staff and our suppliers who have put their hearts and souls into this business for over a decade.”
“I appreciate how difficult this is for everyone affected. I would also like to thank all the customers who have enjoyed and supported us over the last decade, it’s been a real pleasure serving you,” Jamie added.
Furthermore, the 44-year-old said about his brand, “We launched Jamie’s Italian in 2008 with the intention of positively disrupting mid-market dining in the UK high street, with great value and much higher quality ingredients, best in class animal welfare standards and an amazing team who shared my passion for great food and service. And we did exactly that.”
Moreover, in August during an interview with Financial Times, Oliver explained the funding of his restaurant chain while it was near bankruptcy.
He stated, “We had simply run out of cash.”
“And we hadn’t expected it. That is just not normal, in any business. You have quarterly meetings. You do board meetings. People supposed to manage that stuff should manage that stuff.”
He stated that he’d invested his own savings of £7.5m followed by £5.2m.
“I had two hours to put money in and save it or the whole thing would go to shit that day or the next day. It was as bad as that and as dramatic as that.”
He further added about the collapse of his chain, “We’re still trying to work it out, but I think that the senior management we had in place were trying to manage what they would call the perfect storm: rents, rates, the high street declining, food costs, Brexit, increase in the minimum wage.
The British chef also starred in a few cooking shows including, Jamie’s 30-Minute Meals and The Naked Chef.
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