One of London’s most famous restaurants has been placed into administration after claiming its hand was forced by its rent being hiked up 60%, leaving it with a bill for arrears of £517,000.
Administrators are now seeking a buyer for the famous Criterion Restaurant after directors of the firm put out an SOS following discussions with its landlord.
The Criterion, which is the trading name of Vox Restaurants, was officially put into administration on 18 June, with Peter Kubik and Andrew Andronikou of UHY Hacker Young appointed as joint administrators.
And yesterday the administrators revealed details of the proposed rental agreement that they say has led to their involvement.
“Following a recent rent assessment, the rent for the property has increased from £525,000 to £850,000 per annum. Due to a demand being made by the landlord for rent arrears created by the assessment in the sum of £517,000 the directors sought financial advice from Peter Kubik of UHY, London office.”
They added that the decision was made to look for a new owner given the trading record of the business. “Up until now the company has traded successfully. It was decided that administration was the most viable option as it allows the business to continue to trade as normal while the administrators market the business for sale.”
The business originally opened in 1874 and is located in the heart of Piccadilly Circus. It serves a modern European menu.