The Liverpool outpost will shut, while Leeds, Manchester, Nottingham, Sheffield and Headingley to continue trading.
Red’s founders James Douglas and Scott Munro will both continue to work within the business.
Cash flow pressures
Anthony Collier and Andrew Haslam, partners FRP Advisory LLP, were appointed joint administrators of Red’s Smoque Limited on 27 June 2019 after they had suffered severe cash flow pressures following a period of challenging trading.
As part of the deal, Red’s sister company, microbrewery Legitimate Industries, has also been acquired.
Tokyo Industries founder Aaron Mellor said: “Red’s is an incredible brand with strong growth potential. The guys’ passion, creative yet rebellious attitude versus near cult status restaurants are a perfect synergy for both parties.”
Tokyo’s portfolio includes Bier Keller, Brew Haus and FAC251 Factory Manchester, and international locations including Ibiza, Los Angeles, Palm Springs, Croatia and Dubai.
Administrator Anthony Collier said: “Red’s True Barbecue is a well-known name in the northern hospitality industry and we’re pleased to have secured a deal that, first and foremost, saves many jobs. We wish the team at Tokyo Industries every success as they take the brand forward.
“The challenges facing the casual-dining market are well documented and a period of rapid expansion, combined with a high overhead base, had unfortunately exacerbated the financial issues facing the business.
“Our main priority is now to work closely with the redundancy payments service to support affected employees during what we know will be a difficult time.”
Susan Kelly at Squires Patton Bogs provided legal advice to the joint administrators on the sale.