KPMG appointed as Jamie Oliver’s restaurant group goes into administration

The group, which has two Scottish locations in Edinburgh and Glasgow, includes 23 Jamie’s Italian outlets, plus the Fifteen and Barbecoa restaurants in London and Jamie’s Diner at Gatwick airport.

The business appointed executives at advisory firm KPMG as administrators on Tuesday.

In total, 25 restaurants are affected by the move, 22 of which are from the Jamie’s Italian chain.

Following the appointment of administrators, all but three of the group’s 25 eating establishments have closed. Two Jamie’s Italian restaurants and Jamie Oliver’s Diner at Gatwick Airport will continue to trade in the short term.

“The group had recently undertaken a process to secure additional investment into the business and, since the beginning of this year, Jamie Oliver has made available additional funds of £4m to support the fundraising,” KPMG said in a statement.

“However, with no suitable investment forthcoming and in light of the very difficult current trading environment, the directors resolved to appoint administrators.”

Jamie Oliver’s Fifteen Cornwall at Watergate Bay, which operates under a franchise, is unaffected. The international restaurants trading as Jamie’s Italian, Jamie’s Pizzeria and Jamie’s Deli will also continue to trade as normal.

Mr Oliver said: “I am deeply saddened by this outcome and would like to thank all of the staff and our suppliers who have put their hearts and souls into this business for over a decade. I appreciate how difficult this is for everyone affected.

“I would also like to thank all the customers who have enjoyed and supported us over the last decade, it’s been a real pleasure serving you.

“We launched Jamie’s Italian in 2008 with the intention of positively disrupting mid-market dining in the UK high street, with great value and much higher quality ingredients, best-in-class animal welfare standards and an amazing team who shared my passion for great food and service. And we did exactly that.”

Eileen Blackburn

Commenting on the news, Eileen Blackburn, head of restructuring and debt advisory at French Duncan LLP, said: “The news that Jamie Oliver’s restaurant chain has gone into administration is unwelcome but not surprising given the enormous financial struggles that the sector has faced in recent years. In Scotland there were 136 restaurants which went through the insolvency process which was the highest figure ever and I believe that this is likely to continue as High Street businesses struggle to keep afloat.”

“The combined pressures of high business rates coupled with inflexible leases and sky-high rents are making it extremely difficult for the casual dining sector to survive. There needs to be a major examination of the way in which the High Street operates to ensure that we have town and city centres to visit in the future.”

Eileen concluded: “Unfortunately the fate of large restaurant chains and independent outlets remains in the hands of landlords and councils who both believe that they can continue to charge enormous sums of money at a time when margins have never been tighter. With higher minimum wages, greater food import costs, and more competition it is clear that the casual dining market is under attack as never before. The administration of Jamie Oliver’s restaurant is simply the latest manifestation of the malaise impacting upon the High Street.”