Administrators reveal only Wisbech and four other Burger King outlets did not remain open following 30 strong franchise collapse
PUBLISHED: 14:05 29 December 2017
Administrators who moved in when 30 Burger King franchises collapsed earlier this year have revealed that only Wisbech and four others across the UK were forced to cease trading.
AlixPartners, the administrators, says the Wisbech store – where 18 people lost their jobs – had “no realistic prospect of becoming profitable”. They also discounted selling other stores in Accrington, Gloucester, Sutton Coldfield and Rugby.
Their report reveals the total indebtedness of two companies involving in running the franchises and other stores totally nearly £20 million.
However those stores that did remain open have now been sold as part of a £3 million sale to Powerbanks Ltd, who already runs other franchises on behalf of Burger King.
Some clue as to the problems facing the Wisbech store can be seen from the sales particular being circulated to find a buyer for the Horsefair store where a rent of £60,000 is being asked.
Subject to five yearly upward only rent reviews, the unit – with ground floor sales of 217 square metres – also commands a rateable value of £56,500 which means that the current annual business rates work out at £27,063.
On top of this prospective purchasers will need to find a service charge of £8,580 - or put simply tenants thinking of opening a business would need to shell out around £1,750 a week before opening the doors!
Millcliffe Ltd and CPL Foods Ltd were the companies that ran the franchises before being put under the control of administrators at business advisory firm AlixPartners.
At the date when the administrators submitted their Statement of Proposals on May 30, the businesses employed a total of 868 staff and operated 53 restaurants across the UK, 36 of which trade under the Burger King brand and 17 under independent brands such as El Taco Loco and Roosters. The portfolio included Burger King outlets in Bury St Edmunds, Great Yarmouth and Wisbech.
Administrators agreed a support package, so the businesses could continue trading and be sold as a going concern.
Any unsecured creditors, however, will have found the cupboard is bare, The administrators noted that any claims submitted will be held on file but will not be formally acknowledged or written to since there’s no possibility of any payment.
CONTACT: Agents for the empty Wisbech unit are Jackson Criss on 02076377100.