Three hundred jobs have been saved from the axe after a South west restaurant chain was bought out of administration.
Burger chain Hub Box, which was originally launched in Cornwall but has expanded across the region, has been saved after the business was sold in a pre pack deal.
It is thought that the deal sees Loungers co-founder Alex Reilley step down as Hub Box’s chairman. Both Alex Reilley and Loungers co-founder Jake Bishop had invested in Hub Box
At the start of the year the company reported losses of £1.25m. The firm had to ask shareholders to inject nearly £500,000 into the business to get it through the winter and defer paying some of its bills.
The business had put a hold on opening any new restaurants for now and has also been stuck with an empty Devon unit it now isn’t going to turn into an eatery but still has to pay rent on.
The transaction will see all of Hub Box’s 10 restaurants across the South West of England continue to trade, with all of the company’s 300 staff transferring to the purchaser as part of the deal.
Locations include Cheltenham, Exeter and Portmouth along with St Ives.
Hub Box had been working with its advisers from Interpath Advisory to explore investment options that could support its continued operations and its future expansion.
Despite seeing consistent revenue growth over the past three years, the company had recently been hit by rising food, energy, interest and labour costs.
With pressure on cashflow increasing, the directors sought to explore their investment options, including a sale of the business. However, when a solvent solution could not be found, they took steps to seek the appointment of administrators.
Steve Absolom and Will Wright from Interpath Advisory were appointed joint administrators to Hub Box Limited.
Immediately following their appointment, the joint administrators sold the business and assets of the company to South West Restaurants Limited.
Sam Birchall, head of Special Situations at Interpath Advisory who led the transaction, said: “Hub Box has grown a loyal customer base in the South West but, like many other casual dining operators, has been hit hard in recent years by high cost inflation.
“We’re pleased to have secured this transaction which safeguards the future of the brand and which, importantly, preserves employment for 300 staff. We wish all at the company the best for the future.”