Restaurant firm Corbin & King forced into administration

The restaurant firm behind celebrity hotspots The Wolseley and The Delauney has been forced into administration by its biggest shareholder.

Global hotel giant Minor International said it has appointed insolvency specialists for Corbin & King, which also owns Brasserie Zedel and other London restaurants.

The move comes after a lengthy dispute between the restaurant group and its biggest financial lender, which started during the pandemic amid debate over site openings.

Investment funds have since made cash refinancing offers to the administrators to keep the firms restaurants afloat, Sky News has reported.

US fund Knighthead Capital Management has reportedly tabled a £38 million move to refinance all outstanding loans to Minor.

Minor, which owns a 74% stake in Corbin & King, said it moved in hired administrators from FRP Advisory after it “was unable to meet its financial obligations”.

The Thai conglomerate added: “The joint administrators will now consider all their options in line with relevant statute and will provide further information to creditors in due course.

“Corbin & King Limited has been severely affected by the Covid-19 crisis and the uneven recovery of the hospitality sector poses further risks to business, as it does the entire sector.

“In this context, with Corbin & King facing major liquidity constraints and having already defaulted under its shareholder and third-party loan obligations since May 2020, the company requires strong financial support – for the sake of the outstanding employees and brands with the group – to survive and succeed.”

Dillip Rajakarier, group chief excutive of Minor International, told investors that all its offers to improve the company’s financial position were “rejected” by co-founder Jeremy King.

Mr King and Chris Corbin have said they intend to buy back the company, whose restaurants are continuing to trade despite the administration.

Administrators at FRP said they are now considering all possible options for the business.

Joint administrator Geoff Rowley said: “Corbin & King Group is one of the most well-established restaurant groups in the UK, but even they have not been immune to the challenges that continue to face the hospitality sector as a result of the pandemic.

“The joint administrators will now work with all stakeholders to consider all possible options for the company.”