Debts to go unpaid after collapse of Simon Rimmer’s restaurant chain
How much the well-known restaurant chain co-founded by celebrity chef Simon Rimmer owed when it collapsed into administration has been revealed for the first time.
Vegetarian restaurant Greens first opened its doors in Didsbury, Manchester, in 1990 but was forced to close in January 2024.
That closure was followed by the chain’s other site in Sale – which had only opened in 2022 – in September this year.
At the time, a statement from the company read: “We’ve done everything possible to make this work but it is now clear the business is untenable”.
Now, a document filed by administrator Begbies Traynor with Companies House has set out how Greens collapsed and how much it owed to its creditors.
According to Begbies Traynor’s document, HMRC is owed an estimated £458,873 in unpaid VAT and PAYE.
Royal Bank of Scotland is also owed £13,164 while trade creditors are owed an estimated £75,000.
Consumer creditors who paid for restaurant vouchers and gift cards are owed around £35,790.
Begbies Traynor said there will not be enough money recovered through the administration process to pay anything back to these creditors.
The company’s business and assets have since been acquired by The Bubble Room Sale Limited, an unconnected entity, for £50,000.
The Bubble Room is a family-run bar with venues in Alderney Edge and Bramhall.
‘Sales projections were over ambitious’
Begbies Traynor’s document said: “The limited company was incorporated in 2011, with a capital investment from John Redeyoff, the plan being to open further sites.
“The [Didsbury] site itself was expanded twice to accommodate more guests, in both 2033 and 2008.
“The business traded well during this time, regularly making sizeable profit – one year around £150,000.
“Though several sites were considered, it wasn’t until 2021, shortly after Covid lockdowns, that a seemingly suitable site was found in Sale.
“Investment was provided by Jamie Clarke and Peter Holliday.”
The Begbies Traynor document also names Simon Connolly, Kyle Quinn and Simon Rimmer as directors.
The firm added: “The directors decided to close the Didsbury site at the end of 2023 to concrete on the larger site that was deemed to have more potential.
“Sales projections for Greens Sale were over ambitious and it took too long to adjust [the] cost base to actual turnover/
“Opening at the start of the financial crisis, cost of living spike and increased mortgage interest rates were contributing factors.
“Further cash injections were made by former directors/shareholders (of around £200,000), but ultimately the debt accrued could not be settled through trade.
“In September 2024, the remaining directors accepted that the outstanding debt could not be paid through either trading or time to pay schemes and the responsible thing to do was to go into administration.”