After a dicey financial year and controversy over an offensive outburst against an Australian TV star, it would appear celebrity chef Gordon Ramsay's recipe for success has turned slightly sour.
After a dicey financial year and controversy over an offensive outburst against an Australian TV star, it would appear celebrity chef Gordon Ramsay's recipe for success has turned slightly sour.
The foul-mouthed host of Ramsay's Kitchen Nightmares, who last month was forced into a grovelling apology after he described presenter Tracy Grimshaw as a lesbian and compared her to a pig, has seen his profits plunge 87%.
According to Ramsay's latest business accounts for 2007-2008, published yesterday, the Scots business mogul, who has closed several of his restaurants, has seen profits for Gordon Ramsay Holdings (GRH) fall from £3.05m to £383,325.
In the year to August 2008, turnover dropped to £35m from £41.6m the previous year.
Meanwhile, net debt soared from £4.06m to £9.48m.
The figures made miserable reading for Ramsay, and his business partner and father-in-law, Chris Hutcheson.
The company has also just paid almost £8m in unpaid backlog of VAT, corporation tax and Pay As You Earn money following an investigation by the Inland Revenue.
Ramsay, 42, recently admitted his accountants had drawn up plans to put GRH into administration after a failed overseas expansion programme.
The chef, who is renowned for his four-letter tirades at his chefs on television, said: "It was the worst bollocking ever. They told me I was ******. They said we should plan for administration. That it would be smoother for everyone. We went over our overdraft limit and we did not hit revenue targets."
The figures reveal Ramsay put £3.5m into the business, while Mr Hutcheson donated £1.5m.
The crisis came after GRH breached covenants, promises made to lenders to secure a loan, on its £500,000 overdraft and £10m of loans with Royal Bank of Scotland.
Ramsay's business model was also damaged by the closure of key London restaurants. The Savoy Grill was shut because of refurbishment at its host hotel, while the Connaught lease expired, which accounted for a £9.5m reduction in revenues.
A statement from the firm said that after a restructuring it was confident the group had "successfully undergone change for the better" and was now "well-placed to grow its operation with a more stable capital base and a more manageable overall structure".
Since December 2007, Ramsay has closed four of his capital city restaurants, including Petrus and La Noisette. The other closures were The Connaught and the Savoy Grill.
The firm said 25 staff were axed as part of the restructuring efforts.
Ramsay, who was born in Johnstone, Renfrewshire, and had trials for Rangers, stumbled across his talent for cooking at college when his football career evaporated after been plagued by injuries.
He began work as a commis chef in the Wroxton House Hotel, Oxfordshire, and then worked in several other venues before moving to London and training under the equally imposing Marco Pierre White.
He continued to excel, studying in France and returning to become head chef at La Tante Claire, London, in 1993.
Shortly afterwards he went into business with Pierrre White, taking a 10% stake in the restaurant Aubergine, of which he was also head chef.
It was there he earned his first two Michelin stars and got his first real taste of business.
He opened his own restaurant, Gordon Ramsay At Royal Hospital Road, in 1998 and three years later the venue earned its third Michelin star, making Ramsay the first Scot to achieve this feat. He is also one of only three UK chefs who have managed to maintain their status of three stars.
The figures revealed yesterday do not include his restaurants across the world, including in Cape Town, Tuscany and Tokyo.
A spokeswoman for the group said the international company will report its results later this month, but added that while the shareholders are the same, the performance of the groups would not impact each other.
Ramsay also has a cookery school in Surrey.
Plans are well under way to open three more restaurants across the globe, including one in Melbourne.
Despite his business troubles, Ramsay isn't swearing over spilt milk and is looking forward to a lucrative year ahead.
Mr Hutcheson, GRH chief executive, insisted the worst was behind the company and that the London restaurants had returned to robust health, a process that will be aided by the reopening of Petrus and the Savoy Grill in 2010.
