Yorkshire administrators save Kensington restaurant with pre-pack deal

Administrators from Wilson Field have arranged a rescue deal for London restaurant L’Etranger.

The South Kensington restaurant was established in 2002 on Gloucester Road near the Royal Albert Hall and London’s Museum Quarter.

It had been trading as L’Etranger Restaurant since 2010 benefiting from the prime location for visitors and theatre-goers. It serves Japanese-influenced French cuisine, as well as maki and sashimi. It has been awarded a number of accolades including an AA Rosette for Best Wine List in the UK 2013.

The company sustained a significant loss following the sale of a second restaurant in 2014. It suffered mounting cash flow issues resulting in HMRC arrears and the threat of a winding up petition.

Kelly Burton and Lisa Hogg of Sheffield’s Wilson Field were appointed joint administrators on 10 July to South Kensington based L’Etranger Restaurant.

In a pre-pack administration deal, Keane Hart Ltd, a company owned and managed by existing management team lead by director Ibi Issolah, acquired the business out of administration for an undisclosed sum.

Kelly Burton, director and licenced insolvency practitioner at Wilson Field, said: “L’Etranger had suffered losses in the past few years due to the previous loss-making sale of a second premises. Funds were spent on L’Etranger which absorbed further cash flow accruing HMRC arrears and the company being threatened with a winding up petition.

“The restructuring process has resulted in the continuation of a viable restaurant and the safeguarding of all the employees and ensures that the business is financially secure for future trading.

“Five jobs have been saved and transferred under TUPE to the new company.”

Shulmans in Leeds advised and dealt with legal matters with Robert McArdle of David Currie & Co in Manchester assisting with asset valuation and disposal.