49% rise in money lent to restaurants by their own directors to keep them afloat

By Joe Lutrario contact

- Last updated on GMT

49% rise in money lent to restaurants by their own directors to keep them afloat
New research has revealed a 49% increase in the amount of money loaned by restaurant directors to their own businesses to keep them afloat.

According to online business finance supermarket Funding Options, loans rose to £192m last year, which is up from £129m the year before and more than double that of 2012/13.

According to its latest Companies House filings, Gordon Ramsay Group owes its directors £10.5m in loans.

Funding Options says that the majority of loans are from directors running small and medium sized restaurants.

The new research follows a rocky period for the restaurant sector. A number of major players are being forced to scale back their operations, including Jamie Oliver​, Prezzo​, Strada​ and Byron.

The problems facing the restaurant sector include a decline in consumer spending, higher input and staff costs and over saturation in some locations. 

Related topics: Business

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