TV chef, cookbook author, and former restaurateur Jamie Oliver’s collapsed restaurant group has left creditors — including his own company, Jamie Oliver Holdings — £83 million out pocket. As first reported by The Times, HSBC bank and HMRC, the government’s tax office, are worst hit, being owed £40 million and £1.7 million respectively.
It follows the release of the joint administrators report from KPMG, the financial services company which has overseen the business since it collapsed. It relates just to Jamie’s Italian, which closed 22 of 23 restaurants, and not to the entire restaurant group, which also included Fifteen in Old Street and Barbecoa in St. Paul’s.
Oliver himself, through his own parent company Jamie Oliver Holdings, which includes his profitable publishing, licensing, and TV interests, is also hit hard: that company loaned the troubled restaurant group £26.5 million in three instalments; it is thought it will recoup only £2.3 million. In addition, Oliver organised, through Jamie Oliver Holdings, what is known as a “voluntary ex-gratia contribution” of £1 million to cover wages owed to the nearly 1,000 members of staff who were made redundant following the closures. Some staff members are said to be engaged in claims relating to redundancy notice and other monies owed. Staff make up what are called “preferential creditors”, which KPMG expect to be paid out in full. They are paid from the £400,000 in assets salvaged following the collapse.
However “unsecured trade creditors” — food and drink suppliers, for example — are owed £6.9 million. Those include Brake Brothers, a wholesaler, which is short of £783,000 in unpaid invoices. KPMG is unable to commit to either an amount or a timeline for repayment of these creditors.
Lastly, KPMG said “secured creditors” — HSBC, HMRC, and Jamie Oliver Holdings — not surprisingly faced a “significant shortfall”.
- Jamie Oliver creditors face £83m hit [The Times]