Fri, 28 Apr 2023 | BUSINESS SALE
Restaurant chain Tapas Revolution has been sold in a pre-pack deal after falling into administration earlier this month. The business and its assets have been acquired by Tapas Bidco, a new firm led by James Picton, who was formerly a managing director at Tapas Revolution's parent company, Spanish Restaurant Group.
The company was founded in 2010 with a location at Westfield Shepherd’s Bush in London and expanded to 11 UK locations. In 2020, the company entered a joint-venture partnership with Spanish Restaurant Company and, that same year, acquired the La Tasca chain. La Tasca’s restaurants were subsequently rebranded as Tapas Revolution sites.
However, the chain was one of many restaurant operators to see its cashflow seriously impacted by the COVID-19 pandemic, with restaurants forced to close for much of 2020 and then subject to social distancing rules that limited their capacity.
More recently, the company has been hit by a drop in consumer confidence amid the ongoing cost of living crisis and has also seen its energy bills rise by around 300 per cent. As a result, RG Insolvency’s Avner Radomsky and Simon Renshaw were appointed as joint administrators to Spanish Restaurant Group on April 5 2023.
In a statement on Companies House, the administrators said: "Initial pandemic exhausted the reserves, leaving the business weak in terms of cashflow and balance sheets and has more recently been impacted by the costs of living crisis, which has seen turnover fall significantly, costs increase due to the inflation levels and the significant rise in energy pricing which has risen over 300%."
The joint administrators subsequently secured a sale of the business and its assets to Tapas Bidco for £235,000. The restaurants are not operated by Spanish Restaurant Group, with the parent company only owning the equity in its subsidiaries, meaning that the sale should not impact restaurant operations.
In Spanish Restaurant Group’s accounts to the year ending October 31 2021, its fixed assets were valued at £300,971 and current assets at £2.4 million. At the time, the group’s net liabilities amounted to £1.75 million.
Find out more about COVID-19's impact on fast casual dining in the UK.
Read about the headwinds currently impacting UK hospitality firms.
View recent administrations.
Three established taverns with equal number of currently rented out accommodations both generating a total income £285k with good profits. This operation is a sound development opportunity.
FREEHOLD
Award-winning fish & chip shop, with manager and team in place, trading from main A road location nearby major holiday/tourist towns.
FREEHOLD
This is a rare opportunity to acquire a well-established restaurant and bar situated in the heart of Leigh on Sea, a vibrant and bustling coastal town known for its charming atmosphere and thriving dining scene. Located on a prime street with high fo...
LEASEHOLD
19
|
Jul
|
Boutique advisory sold to FRP at 5.8x EBITDA | BUSINESS SALE
Lexington Corporate Finance, a boutique advisory firm based ...
19
|
Jul
|
Administrators aim to secure rescue for Worcestershire manufacturer | ADMINISTRATION
A manufacturer based in Worcestershire has fallen into admin...
19
|
Jul
|
Devon timber door manufacturer acquired by Swedish firm | BUSINESS SALE
A manufacturer of high-performance timber doors based in Dev...
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.