Westminster restaurant the Cinnamon Club has today announced a major financial restructuring.
The Indian restaurant is understood to owe around £1m in PAYE and VAT accrued in the first years of trading.
An announcement today said the company was “restructuring its finances” in order to “resolve historic debts”.
Corporate restructuring experts, Begbies Traynor, have been appointed to aid the restaurant in paying off its debts through staged payments while it continues to trade.
Accountants BDO Stoy Hayward have been brought in to review accounting practices.
Financial anomalies led to the board appointing a new management team led by Rohit Chugh and executive chef Vivek Singh in January.
Chugh said: “We have a very strong business which is both popular and profitable and is going from strength to strength. The new management team has had to address major inherited balance sheet and financing issues and has been assisted by a number of expert advisers. We can reassure all our customers and suppliers that it is very much business as usual.”
Chugh also confirmed that The Cinnamon Club brand would be rolled out in the near future, but could reveal no further details.
Former sales and marketing director Iqbal Wahhab, and former managing director John Turner also left the business in January and are no longer involved in the restaurant’s operations.
The Cinnamon Club opened in April 2001 and is on track to turnover more than £5m this year.
By Jessica Gunn
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