Michelin-starred chef confirms shock closure of THREE restaurants as chain collapses
A RESTAURANT chain owned by a Michelin-starred chef has shut three branches after entering administration earlier this month.
Ibérica, led by Michelin-starred chef Nacho Manzano, has announced the latest closure of its site in Leeds.
The chain, known for its traditional Spanish dishes and luxurious settings, operated four restaurants in London and one in Leeds.
But RSM, a professional services firm, confirmed the closures of three sites this morning.
The affected locations include Leeds, Canary Wharf, and Marylebone in London.
After being saved by the Camino group, the Farringdon branch continues to run.
Camino has also taken an option on the Victoria site, which has temporarily closed.
The move has secured 40 jobs, but around 23 redundancies have been confirmed in Leeds.
Gordon Thomson, RSM UK Restructuring Advisory Partner and Joint Administrator, said: “Following a challenging trading environment post-pandemic, hospitality, particularly casual dining, has been hit with staff shortages, increased costs, and lower spending per cover, which all contributed to Ibérica entering administration.
“We worked with the Ibérica management to find a solution for the Farringdon site and the associated staff; and we are working with the remaining staff to seek redundancy support.”
Ibérica, which opened its first restaurant in Marylebone in 2008, has faced financial difficulties in recent years.
It underwent a Company Voluntary Arrangement (CVA) in 2020, leading to the closure of its sites in Glasgow and Manchester.
The closure of the Leeds branch marks another blow to the city’s hospitality industry, with several venues shutting their doors recently.
It previously closed restaurants in Glasgow and Manchester.
The industry continues to grapple with rising costs and changing consumer habits, leaving many businesses struggling to stay afloat.
It’s not the only Michelin restaurant abruptly closing its doors.
A chef who worked at one of Jamie Oliver’s restaurants announced he will shutter his food spot, leaving diners devastated.
Meanwhile, former Masterchef finalist Tony Rodd was forced to close his restaurant in Blackheath whilst Michel Roux Jr closed the doors on his iconic restaurant Gavroche in January after 56 years in business.
Experts say the cost of living crisis has left customers favouring a cheap dinner over splashing out on fancy evenings out in expensive restaurants, and this has made celeb chefs think twice about whether it’s worth continuing to run their business.
What is happening to the hospitality industry?
By Laura McGuire, consumer reporter.
MANY Food and drink chains have been struggling recently as the cost of living has led to fewer people spending on eating out.
Businesses had been struggling to bounce back after the pandemic, only to be hit with soaring energy bills and inflation.
Multiple chains have been affected, resulting in big-name brands like Wetherspoons and Frankie & Benny’s closing branches.
Some chains have not survived. Byron Burger fell into administration last year, with owners saying it would result in the loss of over 200 jobs.
Pizza giant, Papa Johns is shutting down 43 of its stores soon.
Tasty, the owner of Wildwood, said it will shut sites as part of major restructuring plans.