Joint Administrators Andrew Pear and Michael Solomons of BM Advisory, the restructuring, recovery and insolvency firm, have successfully concluded the sale of the business and assets of Dirtybird Restaurants Limited to Inspirational Bar & Restaurants Management Limited.
The restaurant group, operating from five London sites including Canary Wharf, Camden, Islington, Shoreditch and Westfield, and specialising in fried chicken, traded as Bird Restaurants (“the Company”).
Financial pressures, exacerbated by difficult trading conditions across the industry, and an unsuccessful refinancing process led the directors of the Company to seek professional advice from BM Advisory.
After considering the potential options of continuing the business on the basis of securing additional funding as well as a CVA, BM Advisory undertook an independent marketing campaign which led to a high level of interest and a number of offers for the business.
Due to the Company’s financial position, Dirtybird Restaurants Limited was placed into Administration on 12 August with the appointment of Andrew Pear and Michael Solomons as Joint Administrators.
Immediately following their appointment, the Joint Administrators completed the sale of the business and assets to Inspirational Bar & Restaurants Management Limited.
Andrew Pear comments: “The restaurant sector has, in recent years, experienced a significant downturn in trading conditions as a result of ongoing political and economic uncertainly. The funding market for small and medium sized businesses in the sector has narrowed, and the knock-on effects of this resulted in the Company experiencing cashflow difficulties and, ultimately, insolvency.”
“We are very pleased to have concluded a sale of the business and assets in short order, maximising realisations whilst preserving the business and therefore the employment of the majority of employees. We wish the business every success in the future.”