Rescue deal saves 530 jobs at burger restaurant chain
The administrators of the Handmade Burger Co have completed a sale of the business after it collapsed earlier this month, safeguarding 530 jobs.
As part of the deal, the future of 20 restaurants has been secured to an unnamed buyer. The new owner is understood to be a private investor who runs a number of McDonalds franchises across the West Midlands.
The sites being saved include those in Hull, Leeds, two in Sheffield as well as Manchester, Leicester and Birmingham.
Administrators from Leonard Curtis were appointed to The Sargeant Partnership and the Handmade Burger Company on 6 July, after the chain collapsed.
It was suggested that the competitiveness of the casual dining market was to blame.
A CVA was initially proposed, but this proved too difficult to execute. Nine sites closed upon the appointment of administrators,
Joint administrator Julien Irving said: “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.”
It first launched in 2006 in Birmingham by brothers Chris and Richard Sargeant, and grew to 29 restaurants.
It received £600,000 in funding in 2015 from Finance Birmingham to fund its expansion, and refurbish several of its restaurants.
A full list of restaurants that have been saved includes: Brindley Place, Birmingham; Bull Ring, Birmingham; Solihull; Meadowhall, Sheffield; Valley Centertainment, Sheffield; Aberdeen; Silverburn, Glasgow; Kingston upon Hull; Lincoln; Ocean Terminal, Edinburgh; Reading; Bath; Bournemouth; Leicester; Leeds; Wembley; Deansgate, Manchester; St. Vincent Street, Glasgow; Southampton and Peterborough.
The administrations are being undertaken by the Birmingham office of Leonard Curtis Business Rescue & Recovery and were advised by Russ Hill of Squire Patton Boggs.
Leonard Curtis Business Rescue & Recovery is part of the Leonard Curtis Business Solutions Group (LCBSG).
