200 jobs saved as Red’s True Barbecue is bought from administration

BBQ restaurant chain Red’s True Barbecue and microbrewery Legitimate Industries have been acquired out of administration in a pre-pack deal that has saved around 200 jobs.

Anthony Collier and Andrew Haslam, partners at specialist business advisory firm FRP Advisory LLP, were appointed Joint Administrators of Red’s Smoque and Legitimate Industries today after they had suffered severe cash flow pressures following a period of challenging trading.

Red’s Smoque operated seven restaurants in the North of England under the Red’s True Barbecue brand, including restaurants in Headingly, Leeds, Liverpool, Manchester, Nottingham, Newcastle and Sheffield.

Its sister company, Legitimate Industries, operated a small-batch brewery in Leeds and together the companies employed around 250 people.

Following an accelerated sales process and their subsequent appointment, the Joint Administrators secured a partial sale of Red’s Smoque to Tokyo Industries, a nightclub, bar and restaurant owner and operator with 36 UK sites.

Its portfolio includes Bier Keller, Brew Haus and FAC251 Factory Manchester, and international locations including Ibiza, Los Angeles, Palm Springs, Croatia and Dubai.

Tokyo Industries has acquired the Red’s True Barbecue sites in Manchester, Leeds, Headingley, Sheffield and Nottingham and approximately 200 employees have transferred across to the new owner. The transaction also included the Legitimate Industries microbrewery and its three employees. The remaining sites in Liverpool and Newcastle have ceased trading with immediate effect.

Anthony Collier said: “Red’s True Barbecue is a well-known name in the northern hospitality industry and we’re pleased to have secured a deal that first and foremost saves many jobs. We wish the team at Tokyo Industries all success as they take the brand forward.

“The challenges facing the casual dining market are well documented and a period of rapid expansion, combined with a high overhead base, had unfortunately exacerbated the financial issues facing the business. Our main priority is now to work closely with the Redundancy Payments Service to support affected employees during what we know will be a difficult time.”

Red’s True Barbecue was founded by James Douglas and Scott Munro in 2012 with the intention of bringing authentic American BBQ food and flavours to new consumers. Both will join the Tokyo Industries group.

Aaron Mellor, founder of Tokyo Industries, added: “Red’s is an incredible brand with strong growth potential. James and Scott’s passion, creative yet rebellious attitude, and near cult status restaurants are a perfect synergy for both parties and we’re looking forward to working as a team to take the brand forward.”

Susan Kelly at Squires Patton Bogs provided legal advice to the Joint Administrators on the sale.

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