The parent company of Red Hot World Buffet has applied to the High Court to be placed into administration.
As revealed by MCA the group, in which the Luke Johnson-backed Risk Capital Partners, took a majority stake back in the summer of 2013, began putting sites on the market in February.
The Liverpool Echo reports that Passepartout Ltd filed a notice of intention to be placed into administration on June 15.
Minutes obtained by the Echo from the board meeting discussing the application show that the company is currently “unable to pay its debts” due to “financial difficulties.”
They read: “The Chairman reported that the meeting had been convened in light of the company’s current financial position, details of which have been minuted at previous board meetings.
“In light of the company’s current financial position, the Directors concluded that the company is unable to pay its debts.”
The Echo named FRP Advisory as the chosen administrators, with a spokesman saying: “A number of offers for sites have been received from trade competitors and these are currently being considered by FRP Advisory and the Group.
“The group continues to trade as normal with the support of its loyal employees across the Red Hot World Buffet operations.”
CDG Leisure is advising on the sale of the five remaining Red Hot sites.