Cabana called in administrators unable to cover £700,000 funding shortfall
Brazilian casual dining chain Cabana collapsed after failing to cover a £700,000 funding shortfall, the administrators' proposals have revealed.
The eight-strong group, founded in 2011 by Jamie Barber and David Ponté, fell into administration in August, with administrators reporting it had been "exposed to a number of the well documented challenges facing the UK casual dining market at present, including increasing competition and cost pressures".
The business and five of the sites were sold in a pre-pack deal to Barber's Hush Brasseries, with three further restaurants closed with immediate effect.
Administrator KPMG reports that the group's management team had embarked on a stabilisation plan in 2018, exiting loss-making sites, lowering costs and moving to a monthly rental model, but that it was ultimately unable to bridge a £700,000 funding shortfall.
Funds are not expected to be made available to preferential or unsecured creditors.
At the time of administration, the company had net turnover of £10m and employed 224 people, with 156 transferring with the sale of the business.
KPMG has said the group is most likely to exit the administration through dissolution.
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