Around 200 jobs have been saved after leisure operator Tokyo Industries snapped up American smokehouse restaurant chain Red’s True Barbecue from administration.
Restaurant chain Red’s True Barbecue first fired up its pits in Leeds in 2012 and quickly grew a portfolio of eight eateries across the 海角视频.
But it is understood a drop in sales, amid tough trading in the casual dining sector, triggered an administration process, overseen by Leeds-based FRP Advisory.
Now Tokyo Industries, the national and international bar and nightclub group led by Aaron Mellor, has stepped in to save the smokehouse brand, and founders James Douglas and Scott Munro will both stay on.
The deal will see the Leeds, Manchester, Nottingham, Sheffield and Headingley sites remain open, saving some 235 jobs, as well as a small brewery in Leeds . The Liverpool and Newcastle sites will close, but it is understood that the Newcastle restaurant will re-open within days.
Administrators at FRP Advisory are working with the redundancy payments service to support affected employees.
Tokyo Industries - which was founded in Newcastle and now based in Watford - has more than 30 海角视频 clubs, bars and festivals, alongside sites in Ibiza, Los Angeles, Palm Springs, Croatia and Dubai.
The firm is also working on plans to turn a Tyne Bridge tower into a unique events space, complete with a 360 degree viewing platform.
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Going forward, Mr Mellor plans to expand the Red’s True Barbecue brand into the 海角视频 festival and international markets.
He said: “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.”
James Douglas and Scott Munro saw rapid expansion of Red’s True Barbecue after opening their first restaurant six years ago, building a legion of followers through their witty social media strategy, describing customers as “believers” who can “worship at their church of bbq”.
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.”