The catering company behind celebrity hotspots The Wolseley and The Delauney has been forced into administration by its largest shareholder.
Global hospitality giant Minor International said it has appointed insolvency specialists for Corbin & King, which also owns Zedel’s Brewery and other London restaurants.
The move comes after a long dispute between the restaurant group and its biggest financial lender, which began during the pandemic amid debate over venue openings.
Investment funds have since made cash refinancing offers to directors to keep the company’s restaurants afloat, Sky News reported.
US fund Knighthead Capital Management has reportedly offered a £38m move to refinance all outstanding loans to Minor.
Minor, which has a 74% stake in Corbin & King, said it hired directors hired by FRP Advisory after it was “unable to meet its financial obligations”.
The Thai conglomerate added: “The joint administrators will now consider all of their options in accordance with applicable law and will provide further information to creditors in due course.
“Corbin & King Limited has been severely affected by the Covid-19 crisis and the uneven recovery in the hospitality sector poses additional risks for businesses, as it does for the industry as a whole.
“Against this backdrop, as Corbin & King faces major liquidity constraints and has already defaulted on its shareholder and third-party loan obligations since May 2020, the business needs support. financial strength – for the benefit of the group’s exceptional employees and brands – to survive and succeed.
Dillip Rajakarier, executive group leader of Minor International, told investors that all of his offers to improve the company’s financial situation had been “rejected” by co-founder Jeremy King.
King and Chris Corbin have said they intend to buy the business, whose restaurants continue to trade despite the administration.
FRP directors said they are now considering all possible options for the company.
Co-director Geoff Rowley said: “Corbin & King Group is one of the most established restaurant groups in the UK, but even they have not been immune to the challenges the hospitality industry continues to face. coping with the aftermath of the pandemic.
“The co-directors will now work with all stakeholders to consider all possible options for the business.”