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.
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.
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.
