French restaurant chain Bistrot Pierre has more than 100 staff and closed multiple sites as its goal as it battled to return to profitability.
The company, which is backed by London-based private equity firm Livingbridge Group, was sold out of administration in July 2020 and had previously predicted it would return to pre-Covid levels of profitability by 2024 and set itself the goal of opening a new site every year from 2023.
But newly-filed accounts have revealed reduced sales, the widening of its pre-tax loss and “radical” changes to the company’s structure.
Bistrot Pierre’s turnover fell to £24m in the 12 months ended June 30, 2023, down from £28m in the year before, according to results that have just been filed with Companies House.
As a result the Nottingham-headquartered chain more than doubled its pre-tax loss to £2.5m, up from a loss of almost £670,000 in the year before.
In a bid to turn around its fortunes the company conducted a “radical review” of its structure, which resulted in 120 jobs being shed, bringing its employee total to 669.
Two sites, in Newport and Altrincham, were also closed after Bistrot Pierre said they were “no longer viable”.
Same challenges, ‘radical’ action
In a statement filed today, Bistrot Pierre said: “[This] is the first full financial year not to be directly impacted by the Covid-19 pandemic.
“However the lasting impact of the change it brought to everyone’s lives, including out employees and customers, became evident.
“Inflation running at 10 per cent and the cost of living crisis driven by the pandemic and other world-wide events inevitably cause people to consider much more carefully when, where and how they would spend their limited funds.
“When they do visit their expectations are much higher as they need to feel the value of their experience.
“The business has therefore been very focused on service and in particular driving consistency to ensure that all of our guests enjoy the same great experience.
Why did Bistrot Pierre go into administration?
More than 600 jobs and 19 restaurants were saved after the restaurant chain was bought by a new company called Bistrot Pierre 1994, in a pre-pack administration in July 2020.
The buyer, a new firm named after the year the business was founded, was reported to be backed by the brand’s chairman, John Derkach, and chief executive Nick White.
Steve Absolom, a partner at KPMG, which handled the sale, said: “Covid-19 and the prolonged lockdown period has presented large swathes of the casual dining sector with significant funding challenges, and Bistrot Pierre has been far from immune.
“Despite exploring all alternative options, including relief schemes like the Coronavirus Business Interruption Loan, the directors took the difficult decision to file for the appointment of administrators.”
A total of 682 jobs were saved as a result of the buyout, with 123 roles made redundant.
Six restaurants, including those in Bath, Cardiff and Sheffield, closed following the deal.
The group continues to be backed by private equity firm Livingbridge, which also counts the likes of Love Holidays, Mobysoft and Absolute Collagen in its portfolio.