Red Hot World Buffet to enter administration

The company that operates all-you-can-eat restaurant company Red Hot World Buffet is set to call in the administrators.

Bolton-based Passepartout's Ltd, which operates sites in Manchester, Liverpool, Leeds, Leicester and Cardiff has applied to the High Court to be placed into administration, according to the Manchester Evening News.

FRP Advisory is expected to be named as administrator.

A spokesman said: "A number of offers for sites have been received from trade competitors and these are currently being considered by FRP Advisory and the Group.

"The Group continues to trade as normal with the support of its loyal employees across the Red Hot World Buffet operations.

"The Group has an attractive portfolio of A3 restaurant sites in Manchester, Leeds, Liverpool , Leicester and Cardiff and the Group looks forward to working with FRP Advisory."

Red Hot World Buffet was founded in 2004 by husband and wife, Parmjit and Helen Dhaliwal (pictured).

In August 2013, when it had seven large restaurants across the UK, employing 600 people with a turnover of £22m, Luke Johnson's Risk Capital Partners acquired a majority stake in Red Hot World Buffet for an undisclosed sum.

Its investment was made with the aim of providing development capital to upgrade the existing estate, as well as growth funding for the Group's eighth site which is due to open in Leicester in 2014.

Johnson ceased to be a director of Passepartout's Ltd's parent company, Buffet Restaurants Ltd, in June 2015. However his investment firm Risk Capital Partners still has a majority holding in Buffet Restaurants Ltd. Passepartout's is 100% owned by Buffet Restaurants Ltd.

Luke Johnson's Risk Capital Partners buys major share in Red Hot World Buffet >>