Restaurant chain Chicago Rib Shack has been kept alive after a deal was done to sell the business in a pre-pack administration.
The company, which had struggled with working capital issues, will continue to trade from three locations in London and one in Leeds, while all 72 staff have transferred to Rib Shack Holdings Ltd. The London sites include Stratford, Clapham and Aldgate.
Andrew Hosking and Simon Bonney, partners in the London office of corporate recovery and business advisory firm Quantuma, were as administrators at the end of July.
Andrew Hosking said: “There was insufficient working capital and no prospect of persuading new funding. The decision to appoint administrators was taken to allow medium term trading to continue in order that the business and assets could be exposed thoroughly to the market.
“We are pleased we have been able to effect a very quick sale to Rib Shack Holdings Ltd and save 72 jobs, all without any significant disruption trading.”
Chicago Rib Shack Ltd was founded in 2010 and had an annual turnover of over £4m in its last reported financial year.
It boasts of an original recipe that has “not changed since the day we started and never will”.
Its meat and pork for our ribs are carefully chosen by executive head chef, Thomas Kiss, smoked over applewood chips for a minimum of six hours in a wood burning oven at 107°C.
The business has its origins in the early 1980s when a London businessman launched a maiden site in Knightsbridge. The brand disappeared in the late 1990s but was resurrected nine years ago by CRS Leisure and since seen another change of ownership and new private equity investment.