Food and Drink in pre-pack administration
Food and Drink Group (FDG), the operator of Jamie's Bar, has undergone a pre-pack administration.
A total of 17 bars have been sold to Mainpaint, a company backed by NBGI Private Equity, for a consideration which is not expected to result in any return to shareholders. BDO Stoy Hayward is the company's administrator.
Administration results from "deteriorating market conditions". These meant the group was unable to achieve a transaction to continue operations prior to the administration.
A spokesman for the board of Food & Drink Group said: "The Group has been facing the most challenging economic conditions for decades which has reduced operational performance and has restricted investment in the group's brands.
"These conditions have prevented the group raising the further financing it needed. The sale of the business has secured the jobs of 300 of the group's employees."
Shay Bannon, joint administrator, said: "A reduction in the amount of disposable income as a result of the current economic climate has played a role in the Group's difficulties. Securing a going concern sale of the business, which will protect 300 jobs, is positive news for the employees and the industry as a whole."
FDG's remaining 11 bars, which include Henry J Beans in Bristol and Jamies on London's Charlotte Street, have been left with joint administrators at BDO Stoy Hayward, who are looking to dispose of the group's interest in the leasehold premises.
