Branded Leisure to fight on despite collapse rumours

Branded Leisure, the operator of the Cosmo Spirit Café in Manchester, has denied claims it faces collapse.

The company is fighting a winding-up petition at the High Court, brought about by a building company. Director Renwick Haddow blamed its lawyers and said the petition had "slipped through".

"We will be fighting it vigorously," said Mr Haddow. "Suggestions that we ourselves applied to be wound up are totally and utterly incorrect."

Mr Haddow did say Branded Leisure, which bought the global rights to the Cosmo name in 2001, is restructuring its debt.

Expansion of Cosmo Spirit Café had faltered and roll out plans for the chain have been shelved. The company had planned to open up to 20 outlets in key cities across the UK. Mr Haddow told thePublican.com that it would concentrate on Manchester before looking elsewhere.

"Trading isn't as good as we expected to be honest," said Mr Haddow. "But it is up 50 per cent from January and it is improving week by week. Manchester is not an easy place to trade."

The Manchester outlet includes a bar, a restaurant, a hair and beauty salon and operates a sandwich and takeaway counter. The company had planned to launch its second venue in Cardiff, Wales, in March, 2003.

Branded Leisure floated on OFEX this year and was valued at £3.5m. It raised £650,000 when it made its debut on the market for smaller companies. It planned to move across to AIM - the Alternative Investment Market - but its shares have been suspended by OFEX.