BFG future in doubt after RAW collapse
The future of contract catering firm Bright Futures Group (BFG)](http://www.bfgplc.co.uk) was uncertain this week after the collapse of its subsidiary Restaurants at Work (RAW).
RAW called in administrator MCR last Friday. The move follows months of speculation by industry commentators that BFG was in trouble, after a statement made by auditors in its annual report last year.
The statement said that BFG's pre-tax loss of £3m for the 15 months to 26 March 2009, in addition to RAW's "significant" VAT arrears, indicated material uncertainty "which may cast significant doubt over the group's ability to continue as a going concern".
BFG continues to trade, as do its remaining subsidiaries Jill Bartlett and Yes Dining, both of which it acquired recently. Yes Dining will remain with BFG as its principal operation. A further announcement on the future of Jill Bartlett, which shares premises and back office services with RAW, has yet to be made.
BFG took on Jill Bartlett last October in a deal worth around £650,000 and last month Yes Dining joined the group's portfolio as part of a deal that saw BFG issue £197,700 of new shares. The shares were issued to Yes Dining's owner Castle View International Holdings, which now has a holding of around 26% in BFG as a result.
Privately, few industry commentators seemed surprised at the news of RAW's administration. "It was folklore in the industry that RAW wasn't healthy," said one.
BaxterStorey has now bought RAW's trading assets, including 24 contracts and 180 staff.
BFG said that as a result of RAW being placed into administration, the group no longer has any liability to Lloyds Banking Group and its historic liability to HMRC is also significantly reduced.
Neither BFG nor RAW's administrator MCR were available to comment.
[Bright Futures Group acquires Yes Dining >>](http://www.caterersearch.com/Articles/2010/09/07/334919/Bright-Futures-Group-acquires-Yes-Dining.htm)
<span class=""noindex"">By Janie Stamford
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