Fish calls in receivers after bankers sink rescue plan

The restaurant group Fish yesterday called in administrative receivers after its bankers refused to bail out the company following a sharp drop in trading at its outlets.

Fish, which has seen its share price plunge by 94 per cent from 223.5p last summer to 13.5p, said the accountants Robson Rhodes were seeking a buyer following its collapse.

The move comes six weeks after Fish revealed it mislead the market about trading conditions, warning it would fall into the red rather than report a profit of £2m. It appointed Archie Coulson, the turnaround guru at Postern Executive, in May to review its operations. However, the group failed to convince Barclays, its bankers, to fund a restructuring plan.

Fish, which is headed by the entrepreneur Tony Allan, said it believed that going into receivership was the "best option for delivering a stable environment" to carry on trading.

Its remaining 16 restaurants, which include nine in London, will stay open for business, it said. Two weeks ago Fish closed four restaurants, in London, Leeds and Manchester.

The group's former finance director, Jeremy Ormerod, resigned in April, shortly after Fish released an upbeat trading statement.

The group said its prepared poultry and fish supplier Cutty Catering Specialists Limited is trading profitably and was not subject to the administration order. Fish's shares were suspended at 13.5p, valuing the group at just £2.5m.