Red's True Barbecue bought out of administration
Red's True Barbecue restaurant group has been partially bought out of administration, saving around 200 jobs.
The group, which won the Newcomer Award at the 2014 Cateys and Best Marketing Campaign at the 2016 Cateys, had fallen into administration after suffering "severe cash flow pressures following a period of challenging trading", according to administrators FRP Advisory.
Based in the north of England, the seven-strong group had restaurants in Headingley, Leeds, Liverpool, Manchester, Nottingham, Newcastle and Sheffield.
Tokyo Industries, which has 36 UK sites, has purchased five of the sites, while the remaining two, in Liverpool and Newcastle, have been closed.
Administrator Anthony Collier said: "Red's True Barbecue is a well-known name in the northern hospitality industry and we're pleased to have secured a deal that first and foremost saves many jobs. We wish the team at Tokyo Industries all success as they take the brand forward.
"The challenges facing the casual dining market are well documented and a period of rapid expansion, combined with a high overhead base, had unfortunately exacerbated the financial issues facing the business. Our main priority is now to work closely with the Redundancy Payments Service to support affected employees during what we know will be a difficult time."
Red's True Barbecue was founded by James Douglas and Scott Munro in 2012. Both Douglas and Munro will join the Tokyo Industries group. Last year it closed its only London restaurant citing "challenging market forces".
Aaron Mellor, founder of Tokyo Industries, added: "Red's is an incredible brand with strong growth potential. James and Scott's passion, creative yet rebellious attitude, and near-cult status restaurants are a perfect synergy for both parties and we're looking forward to working as a team to take the brand forward."
Sister business, microbrewery Legitimate Industries, in Leeds has also been bought out of administration.
