Written by: Keith Tully
Reviewed: Tuesday 26th June, 2018
The Mediterranean restaurant business Hummus Brothers has called in administrators after struggling to turnaround a series of cash flow crises in recent weeks and months.
The business, which has been operating six outlets in various parts of London, has become the latest victim of tough trading conditions within the UK’s casual dining sector.
All manner of well-known casual dining brands, including the likes of Prezzo, Jamie’s Italian, Carluccio’s and Byron, have all been forced to make structural changes to their businesses in recent quarters as a result of worsening financial circumstances.
Meanwhile, high street retailers across the country have also been experiencing a toughening of conditions and challenges in maintaining cash flows, with many being obliged to announce extensive store closures and others collapsing into administration.
Hummus Brothers said in a statement: “We have experienced a perfect storm of rising costs, reduced demand and oversupply in the market.
“The combination of the pound falling after the Brexit vote, which pushed up the costs of our raw ingredients, as well as property rents and business rates going up ever higher, make the high street a very difficult place to operate in at this time.”
Having been founded in 2005, various efforts were made by Hummus Brothers to stay afloat in recent months, including a move into the making of supermarket products and selling food at markets and music festivals.
“Unfortunately, despite our best efforts, the business didn’t generate enough cash to keep running until we changed course so, very reluctantly and sadly, we had to close the business,” statements given by the company explained.
Earlier this year, it was revealed by ‘Red Flag Alert’ data compiled for the insolvency specialists at Begbies Traynor that there were roughly 11,000 restaurant businesses around the UK exhibiting ‘significant’ levels of financial distress.
Across the high street as a whole, footfall is believed to be falling in many parts of the country and vacancy rates at retail units are increasing in towns and cities nationwide.
Some of the most high profile entries into administration seen so far this year have been retailers, including, most recently, Poundworld, which collapsed earlier this month and put more than 5,000 jobs in jeopardy.
16th September 2019
There was around a 25 per cent increase in the number of restaurant businesses entering insolvency over the course of the year to June 2019, according to the latest figures on the subject.Read More