The owner of the upmarket burger chain Byron has called in administrators for the second time in less than three years with almost half the 21-site chain closing immediately with the loss of more than 200 jobs.
The administrators to Famously Proper, which also owns the Mother Clucker takeaway brand, said 12 branches were being saved and 365 jobs saved under a pre-agreed rescue deal with Tristar Foods. Both companies have the same owner, the private equity firm Calveton.
However, nine sites, including in Leeds, Manchester, Milton Keynes and the Bluewater shopping centre in Kent, are to close immediately with the loss of 218 jobs.
Claire Winder and Chris Pole, the joint administrators from Interpath Advisory who were appointed on Friday, said Famously Proper had faced “significant challenges to trading, driven by rising costs, principally food and utilities, together with a reduction in customer spending as a result of the current cost-of-living crisis”.
Winder said: “Like many other companies across the hospitality sector, Byron had reported a boost in trading after the end of the Covid lockdown measures. However, the sky-high inflation seen in 2022 saw costs spiral and resulted in reduced customer spend, which in turn placed significant cashflow pressure on the business.
“We are pleased to have concluded this transaction which will see the Bryon name continue to trade on high streets across the country and which, importantly, has preserved a significant number of jobs.”
The latest closures come after a rocky history for Byron, which went into administration in June 2020 at the height of the pandemic with the closure of about 30 sites.
Founded by Tom Byng in 2007, the group once had almost 70 outlets but closed about 20 of these in 2018 when it went through an insolvency process known as a company voluntary arrangement.
The group’s latest troubles come as the hospitality industry struggles with rising costs and slowing sales as high inflation hits both consumers and businesses.
Trade at bars, pubs and restaurants was further affected by a series of rail strikes which may have cost the industry at least £1.5bn in December alone.
Numerous independent operators have already been forced to close their doors in recent weeks, with the upmarket chain D&D London closing four outlets, while the small juice bar brand Crussh was rescued from administration earlier this week.
