Pret A Manger, the renowned sandwich chain, is facing a winding-up petition from Castle Water, an independent business water supplier, over unpaid debts.
The High Court filing system shows that Pret A Manger (Europe) has been targeted by Castle Water with the petition, which was filed by Addleshaw Goddard, the water company's legal representatives, on Thursday, as reported by .
A winding-up petition is described as a serious statement of intent by a creditor which can lead to a company being shut down due to unpaid debts through compulsory liquidation.
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The case was filed by the water company’s lawyers at Addleshaw Goddard on Thursday. The Official Receiver is noted as a third party.
City AM reports that this is in regard to uncontested debt, and the title also understands that the bill is less than £1,500.
An official receiver is a government-appointed insolvency practitioner tasked with managing the financial affairs of bankrupt individuals and companies in liquidation.
Pret Intermediate Company, which is the owner of Pret A Manger (Europe), reported operating profit of £26.1m in 2023, and system sales of £1.094bn.
In its most recent accounts submitted to Companies House, Pret a Manger (Europe) recorded an operating loss of £3.7m, following a pre-tax profit of over £54m in the previous 12 months. The company's accounts for the current financial year are not expected until September 2025.
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According to its going concern assessment, Pret A Manger indicated it "will require additional funds, through funding from its parent company... to meet its liabilities". An auditors’ report on Pret A Manger's accounts stated there were "no material uncertainties that could have cast doubt over [Pret’s] ability to continue as a going concern for at least a year from the date of approval of the financial statements".
The report further added, "The risk that we considered most likely to adversely affect the company’s available financial resources and/or metrics relevant to debt covenants over this period was an inability to achieve the revenue growth targets in the group’s business plan as a results of a reduction in customer’s level of income."
City AM has sought comments from Pret A Manger (Europe), Addleshaw Goddard, Castle Water and the Government insolvency service.