Jamie Oliver’s restaurant chain collapses into administration, with 1,000 jobs lost

Celebrity chef ‘deeply saddened’ by outcome, thanks company’s staff and suppliers for putting ‘hearts and souls into this business’

Jamie Oliver’s restaurant chain has collapsed, resulting in 1,000 job losses and leaving some staff “in tears”.

The celebrity chef’s company will close 22 of 25 restaurants, including all but one branch of Jamie’s Italian, along with Barbecoa and Fifteen London.

Oliver said he was “deeply saddened” by the outcome and thanked his company’s staff and suppliers for putting “their hearts and souls into this business for over a decade”.

Staff expressed shock and sadness at the announcement. Chef Colin Roberts, 31, from Walsall, who has worked at Jamie’s Italian in Birmingham for 19 months said: “I was at home when I got an email at 10.30am telling me there was going to be a conference call in half-an-hour.

“Speculation was rife that something was up but when we were all told that the company had gone into administration and we’d lost our jobs it was a huge shock.”

Josh Singh, 24, began working at the company as door staff in 2013 before working his way up the ladder to become manager.

“I am gutted,” he said. ”We received an email from KPMG basically saying, I’m afraid you’re sacked, don’t bother coming into work.”

But Mr Singh said he agreed with Oliver’s vision for the chain and did not blame him for its failure.

“In the early years it was a destination restaurant but I think over time the message got lost,” he said.

“The company started giving things away and turned into your average high street restaurant instead of a celebrity restaurant.”

A sign in the door of a closed-down Jamie’s Italian restaurant in Manchester notifies people the KPMG have been appointed as administrators. (AFP/Getty Images) (AFP/Getty)

The Gatwick Airport branch will soon become the sole remaining outpost of Oliver’s restaurant empire in the UK. Both Jamie’s Italian restaurants and Jamie Oliver’s Diner at the airport will continue to trade in the short term while the joint administrators explore options for the site

International restaurants trading as Jamie’s Italian, Jamie’s Pizzeria and Jamie’s Deli will continue to trade as normal.

Buyers had been sought for the company after Mr Oliver decided to sell up amid increasingly bleak prospects looked for the casual dining sector.

Byron Burger, Carluccio’s, Gourmet Burger Kitchen and Prezzo are among a host of chains forced to close outlets.

The company started giving things away and turned into your average high street restaurant instead of a celebrity restaurant.

Oliver revealed last year that he had pumped £13m into his restaurant business two years ago when it had been close to bankruptcy after running up debts of £75m.

He shut 12 restaurants and let 600 staff go in January 2018 but has not been able to turn the company around.

“I appreciate how difficult this is for everyone affected,” Oliver said on Tuesday.

“I would also like to thank all the customers who have enjoyed and supported us over the last decade, it’s been a real pleasure serving you.

“We launched Jamie’s Italian in 2008 with the intention of positively disrupting mid-market dining in the UK high street, with great value and much higher quality ingredients, best in class animal welfare standards and an amazing team who shared my passion for great food and service. And we did exactly that.”

However, in October last year, Oliver admitted he had “no more money” to invest in Jamie’s Italian. “There’s a point where I can’t put the other side of the business at risk as well and the people who work there,” he said at the time.

The company lost £20m in 2017 after a £700,000 profit in 2016. It faced the same cocktail of problems as others in the industry: rising minimum wage, higher business rents, better takeaway options and squeezed consumers.

Will Wright, partner at KPMG and joint administrator, said conditions for casual dining restaurants were as tough as they have ever been.

The directors worked “tirelessly” to stabilise the business but had not been able to secure new investment, Mr Wright said.

“Unfortunately, with insufficient funds available to be able to trade the business in administration, all but the Gatwick airport restaurants have now closed.”

The administration will serve as a “warning shot” for other restaurant businesses, said Julie Palmer, a partner at insolvency specialists Begbies Traynor.

She added: “A tightening of consumer’s belts has not helped as disposable income has decreased, while the rise of courier services such as Uber Eats and Just Eat is giving cheaper, more convenient options delivered straight to the door.”

Oliver’s media empire continues to thrive, posting £8m profit on £32m revenue in 2017.