Tue, 17 Oct 2023 | BUSINESS SALE
Dark kitchen firm KBox Global has fallen into administration as a result of ongoing trading difficulties. With no solvent solution available to the business, administrators from Interpath Advisory will now seek to sell its brands and platforms.
KBox Global worked with restaurants, hotels and kitchens, using spare kitchen capacity to operate “dark kitchens” and licensing a suite of delivery-only brands. The firm, which also devised its own brands and provided training and performance management to operate them, experienced strong growth during the pandemic, amid rapid expansion in the delivery market.
As food delivery grew in popularity during COVID-19, KBox secured £5 million in seed funding from Hoxton Ventures, before raising a further £12 million in a funding round led by Balderton Capital. The firm built a network of kitchens across London, Glasgow, Liverpool, Manchester, Edinburgh and Brighton and was planning international expansion in countries including India and Australia through franchise agreements.
However, the firm began to experience increasing difficulties over recent years, with founder Salima Vellani leaving the business last year. Like many other food sector businesses, the company was also impacted by rising cost inflation.
Interpath Advisory’s Nick Holloway and Will Wright were appointed as joint administrators on October 11. All 18 of the company’s employees were made redundant, with the joint administrators saying it was apparent that "a solvent solution was not available".
Joint administrator and Interpath Managing Director Nick Holloway commented: "This is a challenging time for many dark kitchen operators, as cost inflation continues to impact margins. We will now be exploring the rapid sale of both the brands and platform and would ask that any interested parties make contact with us at the earliest opportunity."
In the company’s most recent accounts, for the period December 28 2020 to December 26 2021, its turnover was slightly over £5 million, but it incurred a £10.1 million pre-tax loss. At the time, its net current assets amounted to £5.9 million and it had net liabilities of £17.4 million.
Read more about the issues impacting businesses in the UK's food industry
Popular and well-regarded Sushi and Ramen restaurant and takeaway, which is situated in a prime city centre location in Norwich. The premises are set over three floors and are presented to an extremely high standard throughout and offers the opportun...
LEASEHOLD
Top performing fish & chip takeaway, averaging £14,500 – £15,500 per week, the subject of recent investment approaching £200,000 ensuring no expenditure required. situated within popular and expanding North West Somerset town, bordering the coast, oc...
LEASEHOLD
Fronting the main shopping thoroughfare, surrounded by national retailers and other businesses, close to famous Abbey, renowned private schools and popular residential areas.
LEASEHOLD
17
|
Jul
|
Buyer sought as micro turbine manufacturer falls into administration | ADMINISTRATION
Administrators are seeking a buyer following the collapse of...
17
|
Jul
|
Electrical engineering business acquired by Mitie at 3.8x EBITDA | BUSINESS SALE
ESM Power, a high voltage electrical engineering business, h...
17
|
Jul
|
Aliter-backed company acquires air compressor maintenance specialist | BUSINESS SALE
Engineering services provider Edwin James Group, which is ba...
Business Sale Report is your complete solution to finding great acquisition opportunities.
Join today to receive:
All this and much more, including the latest M&A news and exclusive resources
Please choose your settings for this site below. For more information please read our Cookie Policy
These cookies are necessary for our website to function properly and provide you with access to all features.
These are analytics cookies that help us to improve the way our website works.
These are used to improve the functional performance of the website and make it easier for you to use.