Sports based bar chain Sports Cafe has appointed administrators, after its bankers refused to extend its credit after poor Christmas trading.
The company said the poor performance during the festive period combined with an uncertain outlook for consumer spending in 2008 meant it had no option but to call the administrators in.
Sports Cafe’s shares were suspended late on Friday afternoon.
Administrators, Bruce Mackay and Alan Lovett, both of Baker Tilly Restructuring and Recovery said it was their intention to keep the business trading.
Last week the group said that while its bank had been supportive in the past there was no guarantee that they would be bailed out this time.
The company, which ended potential takeover talks this time last year, had put in a place a series of cost cutting measures to stabilise the business.
In November 2007 the company said there were early indications of “some success” with profits over the past four months ahead of last year’s and a strong pipeline of Christmas bookings.
Sports Cafe suspends shares >>
Sports Cafe seeks rescue after poor Christmas >>
Sports Cafe optimistic despite football failure >>
By Christopher Walton
E-mail your comments to Christopher Walton here.
| | Newswire
For the latest hospitality news, sign up for our e-mail news alerts. | |