The well-known restaurant chain co-founded by celebrity chef Simon Rimmer, Greens, has disclosed the extent of its debts following its collapse into administration. The vegetarian eatery, which first opened in Didsbury, Manchester, in 1990, was forced to shut down in January 2024.
This was followed by the closure of another branch in Sale, which had only been operational since 2022, in September of the same year, as reported by .
At the time of closure, the company issued a statement saying: "We’ve done everything possible to make this work but it is now clear the business is untenable".
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A recent document from administrator Begbies Traynor, filed with Companies House, reveals the financial turmoil that led to Greens' downfall and the amounts owed to creditors. HMRC is reportedly owed approximately £458,873 in unpaid VAT and PAYE, while the Royal Bank of Scotland is due £13,164.
Trade creditors are estimated to be owed £75,000, and consumers who purchased restaurant vouchers and gift cards are out of pocket by around £35,790. Begbies Traynor has indicated that there will not be sufficient funds from the administration to repay these creditors.
The business and assets of Greens have been bought by The Bubble Room Sale Limited, a separate company, for £50,000. The Bubble Room is a family-owned bar with locations in Alderney Edge and Bramhall.
‘Sales projections were over ambitious’
Begbies Traynor's report revealed details on the financial journey of a local hospitality business, outlining: "The limited company was incorporated in 2011, with a capital investment from John Redeyoff, the plan being to open further sites."
The document further detailed the expansion of the Didsbury location: "The [Didsbury] site itself was expanded twice to accommodate more guests, in both 2033 and 2008."
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Highlighting a period of prosperity, it noted: "The business traded well during this time, regularly making sizeable profit – one year around £150,000."
However, after deliberation, a new site was pursued post-Covid lockdowns: "Though several sites were considered, it wasn’t until 2021, shortly after Covid lockdowns, that a seemingly suitable site was found in Sale."
Finance came from Jamie Clarke and Peter Holliday with John Phythian and Kyle Quinn joining Simon Connolly, John Redeyoff and Simon Rimmer as directors. A decision was made later to concentrate resources: "The directors decided to close the Didsbury site at the end of 2023 to concrete on the larger site that was deemed to have more potential."
Despite these changes, challenges arose: "Sales projections for Greens Sale were over ambitious and it took too long to adjust [the] cost base to actual turnover/" The economic environment added pressure: "Opening at the start of the financial crisis, cost of living spike and increased mortgage interest rates were contributing factors."
Additional funds were provided albeit insufficiently: "Further cash injections were made by former directors/shareholders (of around £200,000), but ultimately the debt accrued could not be settled through trade."
In September 2024, facing insurmountable debts, the directors acknowledged the situation: "In September 2024, the remaining directors accepted that the outstanding debt could not be paid through either trading or time to pay schemes and the responsible thing to do was to go into administration."