The way forward for The Fats Duck and different eating places based by Heston Blumenthal is doubtful after HM Income & Customs issued a winding-up petition in opposition to the chef’s father or mother firm.
HMRC has moved in opposition to SL6 Ltd, which owns The Fats Duck in Bray, Berkshire, alongside the one-Michelin-starred The Hinds Head and several other affiliated ventures. Round 130 employees are understood to be in danger ought to the petition proceed.
The motion follows an additional deterioration within the group’s funds. Accounts filed at Firms Home present SL6 Ltd recorded a lack of £2.05m for the 12 months to 2024, up from £1.39m the earlier 12 months, regardless of turnover of £8.9m.
Administrative bills totalled £8.4m, together with £2.3m in value of gross sales, whereas employees prices rose to £4.07m, reflecting inflationary stress and better wage payments.
The corporate’s accounts reveal whole money owed of £2.7m, together with £1.67m owed in taxation and social safety and £5,417 in company tax. It additionally reported a financial institution overdraft of £806,091, greater than the £697,605 held in money, alongside a number of excellent financial institution loans.
A strategic report signed by Ronald Lowenthal, who now controls SL6 Ltd after Blumenthal bought his stake in 2006, acknowledged a 12 months of “robust financial situations”, citing inflation throughout the provision chain, recruitment challenges and rising wage prices.
Lowenthal mentioned the corporate had chosen to not move the total burden of inflation on to clients, regardless of the impression on profitability. The Fats Duck’s signature 13-course tasting menu, “The Journey”, is presently priced at £350 per head.
Auditors Lawfords Consulting beforehand described the enterprise as a “going concern”, noting administration was in search of long-term funding to stabilise operations. Nevertheless, HMRC’s determination to file a winding-up petition suggests negotiations might not have secured ample assist.
A spokesperson for HMRC mentioned it couldn’t touch upon particular person instances however added that winding-up petitions are solely filed after different restoration choices have been exhausted.
The event comes at a troublesome time for the UK hospitality sector, which has confronted rising vitality payments, meals inflation and better employment prices lately. Positive eating institutions have been notably uncovered to fluctuations in discretionary spending.
The timing can also be notable given recent political debate across the worth of the hospitality sector. Feedback this week from a senior authorities adviser suggesting Britain doesn’t “want any extra eating places” have drawn criticism from trade figures already grappling with increased taxes and regulatory pressures.
Blumenthal, famed for creative dishes similar to snail porridge and “Sound of the Sea”, grew to become one among Britain’s most recognisable cooks by way of The Fats Duck’s experimental delicacies and tv appearances. The restaurant has lengthy been thought to be a cornerstone of recent British gastronomy.
If the winding-up petition proceeds and the corporate can not safe funding or attain a settlement with HMRC, the case might lead to obligatory liquidation, inserting one among Britain’s most celebrated culinary manufacturers in jeopardy.
