Member Article

Rescue deal saves South Kensington eatery from administration

A threatened eatery in South Kensington known locally for its Japanese-influenced French cuisine has been rescued from closure after a company headed up by its existing management team acquired the business from administration.

L’Etranger Restaurant at 36 Gloucester Road in South Kensington has been in operation since 2002 and trading as L’Etranger since 2010 where it has benefitted from a prime location near major London landmarks including the Royal Albert Hall, the Natural History Museum and the Victoria and Albert.

However, the company running the 80-cover restaurant fell into financial difficulties following the sale of a second restaurant in 2014 and mounting cash woes resulted in arrears with HMRC and the threat of a winding up petition.

Kelly Burton and Lisa Hogg from Yorkshire-based Wilson Field were appointed as joint-administrators for L’Etranger on 10 July.

The pair worked with Keane Hart Ltd, a new company led by director Ibi Issolah, to help rescue the restaurant from administration, with the company agreeing to pay an undisclosed sum for the business.

Following the acquisition Kelly Burton, who is Director and licensed insolvency practitioner at Wilson Field, said: “L’Etranger had suffered losses in the past few years due to the previous loss-making sale of a second premises. Funds were spent on L’Etranger which absorbed further cash flow accruing HMRC arrears and the company being threatened with a winding up petition.

“The restructuring process has resulted in the continuation of a viable restaurant and the safeguarding of all the employees and ensures that the business is financially secure for future trading.”

Burton adds that five jobs were saved as a result of the rescue package and the restaurant will now continue operating.

Shulmans in Leeds advised and dealt with legal matters with Robert McArdle of David Currie & Co in Manchester assisting with asset valuation and disposal.