How the Naked Chef got Caught with His Pants Down…

June 4th, 2019 Posted by alastair, blog, Uncategorized 0 comments on “How the Naked Chef got Caught with His Pants Down…”

written by alastair barlow [blog]

The ‘Naked Chef’ Jamie Oliver has seen his second restaurant group go down in flames with about 1,000 jobs lost. The sad collapse offers four key lessons for interested observers.

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The ‘Naked Chef’ Jamie Oliver has seen his second restaurant group go down in flames with about 1,000 jobs lost. The sad collapse offers four key lessons for interested observers.

Jamie Oliver shot to fame about 20 years ago and subsequently had a string of successful books, TV shows and other licensing deals. His personal fortune was estimated at £150m in 2017.

But while he has made a vast amount of money from his successes, he’s also had his fair share of failures too, admitting that “40% of his business ventures were failures”. In recent years, he’s also closed Recipease (chain of cookery shops), his Union Jack’s restaurants and Jamie’s (a food magazine).

So, what went wrong? Here are some key points from the collapse of Jamie’s Italian:

  • The first Jamie’s Italian was opened in Oxford in 2008.
  • The group enjoyed significant growth which started slowing in 2013.
  • Despite continued revenue growth, absolute profits started reducing from 2013.
  • Rapid expansion took it to a peak of 42 restaurants in 2015.
  • Six restaurants were closed in 2017. The restaurant chain entered into a CVA in February 2018 and closed a further 12 restaurants.
  • On 21 May 2019, Jamie’s Italian Limited appointed KPMG as administrators for the UK-based restaurant business.
  • Since appointment, 22 restaurants have been closed and 3 remain open in the short term.

While Oliver had put in more money and the group was seeking additional investment, ultimately, it was too late and likely a combination of market conditions, a lack of staying relevant to consumer trends and, potentially, uncontrolled expansion were to blame.

There are a few lessons to be learnt from this latest high-street administration.

You can read the full blog post to see the lessons on AccountingWeb here.