Edinburgh Based Hickory Goes Into Administration

Hickory, a Scottish catering and hospitality firm, has gone into administration, with a 100 Jobs at risk.

Hickory, a restaurant founded in 2012 in Edinburgh, caters for special occasions including weddings and private and business gatherings. Additionally, it serves festivals like the Scottish Open, Borders Book Festival, and Royal Highland Show.

The company entered administration on November 20th, according to documents filed with Companies House. Opus Restructuring & Insolvency has been appointed, and Mark Harper and Charles Turner are currently investigating the options available to Hickory and its creditors.

Like many other hospitality businesses the company has had difficulty recovering from the lockdowns in the UK during the Covid pandemic. According to its most recent records submitted to Companies House, the company had an average of 142 employees in 2023.

As a result, there was a period of weak trading and margins, and working capital was severely strained. This resulted from the cost of living crises, rising interest rates, and inflation.

Last year’s turnover was £5.6 million, however a number of cash flow issues led to the decision to hire administrators.

In its most recent financial statements, Hickory reported that its debtors owed £2.5 million within a year, up from £1 million the year before. The amount of trade creditors increased from £560,000 to £1.1 million.

Harper said: “We are working closely with the directors and a number of stakeholders to ensure continuity of the forthcoming events.” This includes weddings, charity balls and staff parties.

The hospitality industry is reeling from the aftershocks of the pandemic and the war in Ukraine. The latest rises for employers national insurance has meant confidence in the industry is at a low ebb.