High street bakery chain falls into administration closing all but one store
The high street bakery and coffee chain Le Pain Quotidien has collapsed into administration and closed all but one of its UK stores.
The Belgian coffee chain has 10 sites located across London and Oxford - the only site set to remain open is its store in St Pancras station.
The news of the administration comes after a note was posted in one of the chain's sites.
The note read: "The affairs business and property of the Bruncho UK Limited (trading as Le Pain Quotidien) are being managed by the Joint Administrators, Sarah Rayment and Philip Dakin of Kroll Advisory.”
Le Pain Quotidien's St Pancras site is owned by its sister company SPQ Limited - this means it will not be impacted by the administration.
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Le Pain Quotidien told the Daily Mirror that its stores all closed on June 30 and that it had "explored every possible option" to save the business but it had "not been possible to rescue it".
The chain blamed higher wage costs and "fewer people on the streets", and the "rigid rental market" for the decision to close its stores.
All staff working at these sites have been made redundant - the chain however did not share how many staff this would be.
Sarah Rayment,” global co-head of restructuring at Kroll said: "Pressures on parts of the hospitality and casual dining sector have been well highlighted.
"Brunchco UK Limited which is predominantly located in London has suffered from reduced revenues as a result of decreased footfall in the Capital, high rents and increased wage costs,”
“As part of the next steps of the insolvency, we will be looking to realise value from the company’s leasehold interests and other assets.”
Going forward, the chain will be focusing more on franchised stores and is currently holding talks with potential partners in the UK for new franchises in cities, travel spots, and hotels.
The chain told the Daily Mirror that its flagship store in St Pancras station would be its "anchor" in the UK.
Le Pain Quotidien CEO Annick Van Overstraeten said: "Le Pain Quotidien is steering its strategy with a more forceful focus on franchising in the UK, and elsewhere.
"Now that the UK has left the European Union, Le Pain Quotidien will rely on its franchise model more than ever, as well as the know-how of local partners."
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Le Pain Quotidien, which is French for "the daily bread" was founded in Brussels in 1990 and trades from more than 260 locations worldwide.
Le Pain Quotidien is known for its long, wooden communal tables and baked goods, sandwiches and tartines.
The following Le Pain Quotidien stores have closed for good:
- The Westgate Centre, Oxford
- Marylebone High Street, London
- Hyde Park, London
- Mayfair, London
- Covent Garden, London
- South Kensington, London
- Royal Festival Hall, London
- Monument, London
- Parsons Green, London
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