Sales at Handmade Burger Co. – which has shut all its UK stores – had almost halved during the past four years, administrators handling the business have revealed.
Leonard Curtis Business Rescue & Recovery was appointed joint administrators of The Burger Chain Limited last week, but were unable to find a buyer for the business.
All 18 restaurants were closed with the loss of 283 jobs.
It is the second time that the firm has called in administrators during the last three years.
Joint administrator David Griffiths said the chain had struggled to grow in the face of huge competition within the casual dining sector.
“The casual dining market in the UK has experienced significant challenges over the last four years, largely as a result of overcapacity in the sector, which has resulted in a significant number of insolvencies,” he said.
“Sales at Handmade Burger Co. restaurants have almost halved during this period, which has proved to be unsustainable. It is disappointing that circumstances have meant that a sale of the business has not been possible in this case, but our focus now should be on those employees affected by this difficult news.”
Mr Griffiths said he was working with staff to provide them with all necessary assistance to claim for monies which remain due to them.