Administrators have put Mediterranean restaurant group Hummus Brothers up for sale after it was forced to stop trading due to its financial position.
Restructuring firm Resolve has been appointed to handle the sale and has instructed specialist property agents to market the leases of the restaurants that the group operated.
Resolve’s Ben Woodthorpe, who is managing the affairs, business and property of the brand, said: “The company has suffered from a loss of revenue in recent times driven by rising product costs and greater competition in its sector. The outlets are sited in favourable locations in London and so the current focus is trying to maximise recoveries for creditors”.
On its website, Hummus Brothers said it was with a “heavy heart” that it was confirming the business had entered administration.
It said it had experienced a “perfect storm” of rising costs, reduced demand and over-supply in the market.
“The combination of the pound falling after the Brexit vote which pushed up the costs of our raw ingredients as well as property rents and business rates going up ever higher, make the high street a very difficult place to operate in at this time.
“For the last 12 months, we explored ways to pivot away from the high street and investigated opportunities of working in canteens of large corporates as well as taking on vans which can operate in street food markets and festivals. We also worked with a specialist to help us launch a supermarket product in one of the major UK operators.”
“Unfortunately, despite our best efforts, the business didn’t generate enough cash to keep running until we changed course so, very reluctantly and sadly, we had to close the business.”
Hummus Brothers had been operating for 13 years prior to the administration.