Manchester restaurant saved as chain is bought out of admininstration
A restaurant in Manchester has been saved from closure after the company that owned it was bought out of administration.
However, a sister venue in Liverpool has been forced to close its doors after it was not included in the rescue package.
Around 200 jobs have been saved at the BBQ restaurant chain Red’s True Barbecue and microbrewery Legitimate Industries which have been acquired out of administration in a pre-pack deal.
A string of restuarants in Manchester have been forced to close in recent months the latest was Beastro in Spinningfields.
Anthony Collier and Andrew Haslam, partners at advisory firm FRP Advisory LLP, were appointed joint administrators of Red’s Smoque Limited and Legitimate Industries Limited on Thursday.
The administrators were called in after the restaurants suffered severe cash flow problems following a period of tough trading.
Red’s Smoque Limited operated seven restaurants in the North of England under the Red’s True Barbecue brand.
The restaurants were in Manchester and Liverpool along with Headingly, Leeds, Nottingham, Newcastle and Sheffield.
Its sister company, Legitimate Industries, operated a small-batch brewery in Leeds and the two businesses employed around 250 people.
Following an accelerated sales process and their subsequent appointment, the administrators secured a partial sale of Red’s Smoque Limited to Tokyo Industries, a nightclub, bar and restaurant owner and operator with 36 sites across the UK.
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, which was founded in Manchester by Aaron Mellor, 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 owners.
The deal also included the Legitimate Industries microbrewery and its three employees. The remaining sites 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 aim of bringing authentic American BBQ food and flavours to the UK.
Both James and Scott 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.