Jacobs Media Group is honoured to be the recipient of the 2020 Queen's Award for Enterprise.

Tootsies collapses into administration

12 October 2009 by
Tootsies collapses into administration

Struggling restaurant chain Tootsies has collapsed into administration after becoming the latest victim of the recession.

The group called in the administrators today after parent company Clapham House Group withdrew its support and funding.

A sale of Tootsies, which Clapham House bought for £25m in 2006, has long been mooted as a way for the company to reduce its debt and focus resources on developing its successful Gourmet Burger Kitchen (GBK) and Real Greek brands.

"Given the current economic outlook and the prolonged downturn in trading and profitability at the Tootsies business, the Clapham House board believes that there is little prospect of the Tootsies business as a whole generating a profit in the near future," Clapham House said in a statement.

"As a result, and after extensive review, the solvent restructuring of the Tootsies business is not considered to be a viable solution."

Following Tootsies's collapse, administrator BDO agreed a sale of 11 of its 21 outlets to restaurant group Giraffe for a consideration of £2.5m (before costs) via property agent Coffer Corporate Leisure.

The sites, located in London, Norwich, Bury St Edmunds, Weybridge and Portsmouth, will be rebranded over the coming months and increase Giraffe's portfolio to 36 restaurants plus five airport franchises.

Chairman Luke Johnson said: "This is a deal that will transform Giraffe and it shows how ambitious we are for the business."

Clapham House Group in talks to sell Tootsies >>

Restaurant discounts are hurting net margins, warns Clapham House >>
Clapham House remains positive despite profit fall >>

By Kerstin Kühn

E-mail your comments to Kerstin Kühn here.

If you have something to say on this story or anything else join the debate at Table Talk - Caterer's new networking forum. Go to www.caterersearch.com/tabletalk

Caterersearch.com jobs
Looking for a new job? Find your next restaurant job here with Caterersearch.com jobs

Blogs on Caterersearch.com](http://www.caterersearch.com/blogs) Catch up with more news and gossip on all Caterer's blogs
[Newsletters For the latest hospitality news, sign up for our e-mail newsletters.
The Caterer Breakfast Briefing Email

Start the working day with The Caterer’s free breakfast briefing email

Sign Up and manage your preferences below

Check mark icon
Thank you

You have successfully signed up for the Caterer Breakfast Briefing Email and will hear from us soon!

Jacobs Media Group is honoured to be the recipient of the 2020 Queen's Award for Enterprise.

The highest official awards for UK businesses since being established by royal warrant in 1965. Read more.

close

Ad Blocker detected

We have noticed you are using an adblocker and – although we support freedom of choice – we would like to ask you to enable ads on our site. They are an important revenue source which supports free access of our website's content, especially during the COVID-19 crisis.

trade tracker pixel tracking