Tootsies goes into administration

Struggling restaurant chain Tootsies has gone into administration.

Its parent company Clapham House Group plc, which also owns Gourmet Burger Kitchen and The Real Greek, said its other businesses would be unaffected.

"Given the current economic outlook and the prolonged downturn in trading and profitability at the Tootsies business, the Clapham House Board believes that there is little prospect of the Tootsies business as a whole generating a profit in the near future," Clapham House said in a statement.

Following the collapse, the administrators, BDO, sold 11 of the 21 Tootsies restaurants to Giraffe Concepts for £2.5m (before costs).

The sites are located in Belsize Park, Holland Park, Wandsworth, Brent Cross, Weybridge, Bury St Edmunds, James St W1, Reading, Basingstoke, Norwich and Portsmouth and the acquisition brings the Giraffe group up to 36 restaurants plus five airport franchises.

Giraffe chairman Luke Johnson said: “This is a deal that will transform Giraffe and it shows how ambitious we are for the business.”

Speaking at The Restaurant Show in a panel debate about taking your business to the next level, Clapham House Group chairman David Page said Tootsies was struggling when Clapham House bought it, but with a rebrand and support from the business he 'hoped it would get better'.

However, he said too many sites were running at a loss and to save the rest of the business, he said there was no choice but to call in administrators.