Nigel Smith-backed catering company enters administration
Dean Watson of the Manchester office of Begbies Traynor and Neil Dingley of Moore in Stoke were appointed joint administrators of Cookeze Limited on 24 March, after the company ceased trading.
Cashflow challenges caused by the Coronavirus crisis have partly been blamed for the company’s collapse.
The business was founded by Smith back in 2010, and begun trading under the name Patisserie by Nigel Smith in 2015.
It recorded £1.5m in turnover last year, and clients included Manchester United, Liverpool FC, Jockey Club, and Malmaison Hotels.
The administrators are seeking interested parties who may be attracted by ‘recent major investment’ made by the business to its commercial kitchen space, which forms part of Cookeze’s 48,000sg ft headquarters in Chorley.
“Covid‐19 has seen the sports‐related events where the company excelled cancelled,” says Watson.
“The immediate cashflow challenge this presented, as well as recent significant investment in a high specification modern office complex and commercial kitchen equipment has taken its toll.
“We are in the process of updating staff and providing information on how to claim for their entitlements and advising creditors of the position. In the meantime, we are looking for interested parties who may be strongly attracted by the fact it was, until very recently, a successful business with blue chip clients, talented staff and outstanding facilities.
“Sadly, this crisis will continue to severely impact many other similar events-based businesses who are not geared up to weather the storm over the summer of 2020.”
The Coronavirus crisis has so far led to two major casualties in the restaurant sector.
Yesterday (30 March) the 71-strong restaurant and deli group Carluccio's had to call in administrators following a sustained period of challenging trading the had been exacerbated by the Coronavirus outbreak; while last week The Restaurant Group filed a notice of its intention to appoint administrators to its Tex-Mex chain Chiquito.
Burger chain Byron has also hired advisers to consider its options.
