The Cat’s Pyjamas, the Leeds-based Indian kitchen and craft beer concept, has been bought out of administration enabling all five sites to remain open.
Founder Alison White said the business was saved after a cash injection from family members, and will now be led by her fiancé Paul Baron, who is behind the I am Doner kebab shop concept.
White blamed the business’ cash flow problems on high levels of investment required to support a rapid expansion, and “crippling” high interest short-term loans.
The business had planned a sixth opening in Wakefield, though White said delays at the site contributed to a loss for the business of over £50,000 a month.
White, who recently gave birth of her first child, said she was unable to secure support for the group, and was forced to put the business into administration, which has enabled all sites to stay open.
Baron’s I am Doner, a posh kebab takeaway concept, recently opened its second site in Headingly, supported by a £25,000 Kickstarter campaign.
White also operates Growlers Beer Shop, Whites Café Bar and market research business Face Facts.
She said: “I can hold my hands up to say that my ambitions plans were possibly a bit naive, not having the proper support around me, and I got drawn into a financial situation that was not sustainable.
“As a new growing business it’s very difficult to get long term sustained borrowing from any source - so short term high interest loans are the route many go down. This is what we did and I felt confident I could maintain the pressure of the repayments however when things go wrong circumstances change.
“In hindsight I can see that as an ambitious entrepreneur bringing something new to the restaurant market I had big dreams and ambitious plans but perhaps without the right support or advice.
“The business is fully functioning and continuing to provide the service people know and love. I’m just sorry that we’ve had to go through this and hugely disappointed in the financial systems that have led to this, but I know the new company with my support will continue stronger.”