Zilli seeks rescue deal as debts get out of hand

The news that Italian restaurateur and celebrity chef Aldo Zilli could face losing some of his restaurants after accruing debts understood to be more than £500,000 has sent shock waves through the restaurant world.

A source close to Zilli said the group has been consistently failing to meet VAT payments and is in financial difficulty.

Zilli has called in corporate restructuring specialist Valentine & Co following an emergency meeting of creditors earlier this week when he admitted the company could not afford to pay its bills, according to London's Evening Standard.

It is thought creditors, including the Inland Revenue, will be asked to accept a rescue deal in which they will have to write off three-quarters of what is owed.

While Zilli's five restaurants are still operating, an insider confirmed that the group was in difficulties but said only some of the restaurants would be affected by the crisis.

A close industry friend of Zilli said he had no idea the group was facing such problems. "It's bloody hard in the West End at the moment," he added.

Aldo Zilli and Valentine & Co both declined to comment.

Source: Caterer & Hotelkeeper magazine, 7 - 13 August 2003