5 days ago
Popular restaurant chain founded by owner of Wagamama collapses into administration
A popular restaurant chain created by Wagamama founder Alan Yau has become the latest hospitality business to fall into administration.
Busaba Eathai drafted in administrators from Leonard Curtis earlier this month, potentially marking the beginning of the end for the 25-year-old group, Companies House documents show.
At its peak, the chain had 16 restaurants before financial difficulties forced it to cut back to 12 in 2020.
It still has a location at Lakeside Shopping Centre in Essex, and six sites across London from Westfield shopping centre to the 02 Arena.
Yau opened his first restaurant in 1999 on Wardour St in London's Soho.
Busaba's most recently filed full accounts date back as far as the 12 months to 17 September 2023, in which time the group slumped from a £200,000 annual profit to a £600,000 loss.
It blamed the loss on higher costs, weaker London footfall owing to the cost of living crisis, and 'summer-wide disruption caused by industrial action on train and tube network'.
The group only avoided a compulsory strike off last month after Busaba showed 'cause' to the registrar, according to the documents.
Busaba is now fronted by chief executive Winston Robert Matthews.
Matthews currently also serves as a director of Redwin Investments, Soho Investments and Ray's Manufacturing, the latter of which is overdue on its accounts, according to Companies House.
Busaba is the latest hospitality firm to face financial troubles as the sector shoulders a huge increase in employment costs after hikes to national insurance contributions and the living wage earlier this year.
Hospitality firms also face higher energy costs, while the industry says business rates are too high.
Popular dim sum restaurant Ping Pong recently closed its remaining restaurants, bringing an end to 20 years in operation, while The Coconut Tree is set to be wound-up.
Meanwhile, Oakman Inns, Brewdog and Deep Blue Restaurants have recently announced site closures.
Busaba has been contacted for comment.
