Beloved dessert chain with 25 restaurants suddenly shuts two branches after going into administration

A BELOVED dessert chain has shut two branches after falling into administration.

Crepeaffaire has revealed plans to close down a site in both Chester and Westfield shopping centre in London.

1

The chain, which sells both savoury and sweet versions of the thin French pancake, appointed administrators earlier this week.

When a business appoints administrators, all control is then passed on to them.

The role of the administrator is to leverage the company's assets to help repay creditors and any other debts.

When a business goes into administration it is often seen as a way to rescue it before it goes completely bust.

In this instance, Crepeaffaire was acquired by Crepe Union and Crepe Trading, a group run by its existing founder and management team.

It means the business can continue to trade and all head office staff have been retained.

Allen Kerslake, managing director at Crepeaffaire, said: “We are pleased to announce this new venture with Crepeaffaire.

The brand has a long and successful trading history in its UK home market with enormous growth potential.”

Crepeaffaire has around 25 sites across the globe, including branches in the Netherlands and Saudi Arabia.

Around 12 of these locations are in the UK, but the firm said it would be forced to close branches in Chester and Westfield as part of the process.

It will be a blow for Chester locals who just this month had to wave goodbye to a trendy pub after its owners The New World Trading Company announced a restructuring plan.

The firm closed two sites this month including two Botanist sites and a North Light bar in Chester.

It comes amid a tough time for UK hospitality with cash-strapped households having less to spend on meals out.

The future of three Itsu sites is still up in the air after one of its franchise partners was saved from collapse.

Heart with Smart (HWS) was bought by investment firm Directional Capital last week in a pre-pack administration deal.

The hospitality franchise was best known as the operator of Pizza Hut's dine-in restaurants in the UK, with the firm taking over around 150 of the sites as part of the deal.

Alongside operating Pizza Hut's restaurant chain, HWS also ran a handful of Itsu sites.

Now reports have said that three of its branches across Aberdeen, Edinburgh, and Reading have closed abruptly.

A notice posted on one of the restaurants read: “The lease and ownership rights have unfortunately got caught up in their administration process. This restaurant has had to close while things are sorted out.

“We hope to re-open soon, and we will keep you updated on Itsu.com.

TROUBLE FOR UK RESTAURANTS

It comes as a number of popular restaurant chains have closed due to diners having less money to spend on meals out

Britain's "rudest restaurant"  Karen's Diner closed all its UK sites last year after its parent company, Viral Ventures UK, reportedly racked up more than £400,000 worth of debt.

TGI Fridays closed 35 sites after collapsing into administration last September.

More than 1,000 staff lost their jobs after a deal to save the chain excluded the struggling sites.

Private equity firms Breal Capital and Calveton UK stepped in to save the chain's other restaurants, which now operate under the parent company Liberty Bar and Restaurant Group.