A Scottish restaurant operator has been sold out of administration with all 50 jobs saved.
The collapsed company owned two restaurants, Lucali in Giffnock and Andiamo in Milngavie.
The business operating the two popular restaurants, HMS (883) Limited, had been “streamlined” by its director, but it “was unable to sustain the historical debt burden”.
Gordon Thomson and Gareth Harris of RSM UK Restructuring Advisory were appointed joint administrators of HMS (883) Limited at the start of this month.
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The administrator said: “Based in Glasgow, the company owned two Italian restaurants, Lucali in Giffnock and Andiamo in Milngavie, employing 50 members of staff.
“The business had accrued significant debts due to losses resulting from ongoing challenges in the hospitality industry.
“The director streamlined operations, but was unable to sustain the historical debt burden, leading to the appointment of the administrators.”
Since their appointment, the joint administrators have completed a sale of the business and company assets to GJF Group Limited, “ensuring all staff transfer over to the new company”.
The sale of the business and assets has been completed.
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Gordon Thomson, RSM UK Restructuring Advisory partner and joint administrator, said: “We are pleased to have achieved a successful outcome for HMS (883).
“The sale of the business and its assets not only represents the best outcome for the company’s creditors, but also secures 50 regional jobs in the hospitality industry.”
The Scottish Hospitality Group has warned that there will be further pressures on restaurant companies in Scotland. It earlier called for better taxation support in Scotland for pubs, clubs and restaurants.
The group launched a campaign on the issue last month when its director, Stephen Montgomery, said that the impact of "rates increases will be felt across the country for years to come".
He said that "the consequences will be price rises, business closures and job losses".
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