Licensed Insolvency Practitioners With National Coverage
Cafe chain, Le Pain Quotidien has fallen into administration, resulting in 250 jobs lost and nine of its ten stores shutting. For details of how an administration affects staff see this page on employees.
Stores in Parsons Green, Monument, Royal Festival Hall (Southbank), South Kensington, Covent Garden, Mayfair, Hyde Park, Marylebone High Street and Oxford will be closing. The store to remain open will be that in St Pancras International station. This is the outlet owned by SPQ Holdings Limited, the sister company of Brunchco UK (the trading name of the chain in the UK).
Kroll has been brought in to act as administrators.
Prior to administration alternative options were explored, which involved a CVA and a sale of the business and its assets. Offers were recieved, but nothing possible to pursue.
The Belgian chain has been struggling for some time, with first signs of trouble in the early months of the pandemic. Before the pandemic, 26 UK sites existed. The cost of living crisis and falling footfall in the city, where the majority of outlets are, has been blamed for its failure.
Sarah Rayment, global co-head of restructuring at Kroll, said: ‘Pressures on parts of the hospitality and casual dining sector have been well highlighted. Brunchco UK Limited which is predominantly located in London has suffered from reduced revenues as a result of decreased footfall in the capital, high rents and increased wage costs. As part of the next steps of the insolvency, we will be looking to realise value from the company’s leasehold interests and other assets.’
The international operations of the branch are not impacted.