Celebrity hangout and landmark restaurant Pharmacy in London's Notting Hill closed on Monday.
The Hartford Group, owners of the five-year-old restaurant that served food against a backdrop of art by Damien Hirst, gave notice to its 65 staff at the beginning of the week. Alternative employment within the 21-strong group was being sought for the staff, which includes head chef Hywel Jones.
James Kowszun, chief executive of the Hartford Group, confirmed that the restaurant had closed on Monday but refused to comment further.
However, an inside source said that the group had been made a generous offer by the landlord of the building at Notting Hill Gate, "an offer the group could not refuse". As Caterer went to press, the deal had not been completed, but the lease was expected to be surrendered next week. The restaurant will be gutted this week.
The source suggested that the group had been consolidating over the past few months. He added that a small loss had been made at Pharmacy, but despite benefiting from the sale of the lease, there was "a lot of debt on the books".
Jones, who joined the 120-seat restaurant last November, said: "I was very happy there. We did the best job we could, but business has been hard. It's proved too much."
Asked what the future held for him, Jones said: "I just need to sort my guys out first. My notice period is longer than theirs, so I have no immediate worries like paying my mortgage. I'll sort the boys out first and then take stock."
By Amanda Afiya and Jessica Gunn