London cocktail chain Simmons has entered administration after announcing plans to close at least four sites as it became the latest victim of the immense cost pressure facing hospitality firms.
The upmarket bar group, which had operated more than 20 venues across the UK, has appointed advisory firm Kroll to oversee the administration, company filings show.
In its latest audited accounts, the company posted a loss of £749,000 for the year to end March 2024, reversing a profit of just under £2m the previous year.
Last week Simmons announced plans to shutter at least four sites, including a London venue in Putney, but insisted it had secured the necessary funding to continue operating the remaining locations.
“As part of the process, we’ve taken the tough decision to exit four leases, allowing management to focus resources on our strongest performing venues,” founder Nick Campbell said.
“Alongside this, we’ve secured additional investment to support future expansion and operational improvements across the estate.”
Campbell did not respond to a request for comment as to how the company would be financed but told City AM it was “incredibly disrespectful” to ask employees about the state of the business.
The move adds Simmons to a growing number of hospitality groups that have collapsed, entered administration or massively cut back operations as they face ballooning costs and depressed consumer demand. That has included sharp hikes to employers’ National Insurance Contributions introduced in April, as well as reduced relief on business rates.
The British Beer and Pub Association (BBPA) has estimated that 378 pubs will close this year across England, Wales and Scotland – more than one per day on average – amounting to more than 5,600 job losses.
Kate Nicholls, chair of UK Hospitality, told City AM: “Sadly the news of further closures and business failures is all too common at the moment.
“Our last survey showed that half of London hospitality businesses are operating at or below break even – up from a third since the Budget. That’s because the costs of doing business – rent, rates, employment – are much higher in the Capital but we have yet to see footfall and visitor numbers recover to pre Covid levels.
“Put simply the money coming through the front door is not enough to cover costs and as a result businesses are running out of road – they are being literally taxed out.”