BBQ restaurant chain Red’s True Barbecue has been bought out of administration in a pre-pack deal that has saved around 200 jobs.
Specialist business advisory firm FRP Advisory was appointed to oversee the administration of parent company Red’s Smoque Limited on Friday after it had suffered severe cash flow pressures following a period of “challenging trading”.
It operated seven restaurants in the North of England under the Red’s True Barbecue brand, including restaurants in Headingly, Leeds, Liverpool, Manchester, Nottingham, Newcastle and Sheffield.
Its sister company, Legitimate Industries, operated a small-batch brewery in Leeds and together the two companies employed around 250 people.
Following an accelerated sales process and their subsequent appointment, the administrators secured a partial sale of Red’s Smoque Limited to Tokyo Industries, a nightclub, bar and restaurant owner and operator with 36 UK sites.
Its portfolio includes Bier Keller, Brew Haus and FAC251 Factory Manchester, and international locations including Ibiza, Los Angeles, Palm Springs, Croatia and Dubai.
Tokyo Industries has acquired the Red’s True Barbecue sites in Manchester, Leeds, Headingley, Sheffield and Nottingham and approximately 200 employees have transferred across to the new owner. Sites in Liverpool and Newcastle have closed with immediate effect. The transaction also included the Legitimate Industries microbrewery and its three employees.
FRP Advisory partner, Anthony Collier, said: “The challenges facing the casual dining market are well documented and a period of rapid expansion, combined with a high overhead base, had unfortunately exacerbated the financial issues facing the business. Our main priority is now to work closely with the Redundancy Payments Service to support affected employees during what we know will be a difficult time.”
Red’s True Barbecue was founded by James Douglas and Scott Munro in 2012 with the intention of bringing authentic American BBQ food and flavours to new consumers. Both individuals will join the Tokyo Industries group.
Aaron Mellor, founder of Tokyo Industries, added: “Red’s is an incredible brand with strong growth potential. James and Scott’s passion, creative yet rebellious attitude, and near cult status restaurants are a perfect synergy for both parties and we’re looking forward to working as a team to take the brand forward.”