Gordon Ramsay’s restaurant group, which includes Savoy Grill and Petrus, has been burnt by weaker sales and plans to close Maze, in Mayfair, London.
Holding group Kavalake reported a loss of £3.8m for the year to August 2017.
While revenues rose at its 18 internationally licensed locations, overall the group’s turnover was lower.
Business was also hit by the five-month closure of its Plane Food outlet at Heathrow and an ongoing legal dispute with a partner in Los Angeles.
As well as its high-profile up-market restaurants, the group owns casual dining venues including Bread Street Kitchen, Heddon Street Kitchen, London House and Union Street Cafe.
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The mid-market dining sector has seen a spate of closures this year, including the Byron burger chain and Italian outlets Prezzo and Jamie’s Italian, as consumer spending faltered.
Michelin-starred Maze, based in the London Marriott hotel in Grosvenor Square, will close in January 2019 and a new concept will be developed for the site opening later that year.
The group said the 1% fall in total turnover was in large part down to the temporary closure of Plane Food at Terminal 5, Heathrow, which has now re-opened and is performing “ahead of expectation”.
The loss, which followed a profit of £102m in 2016, was also partly caused by a £1.75m legal bill relating to the business’s Los Angeles-based Fat Cow restaurant which closed in 2014.
A long-running legal dispute between Mr Ramsay and his father-in-law was also finally resolved last year.
However, the group is now expanding overseas, opening a further five international venues, including its first outlet in mainland China, a Bread Street Kitchen in Sanya, and a new “concept” restaurant called Hell’s Kitchen in Las Vegas.
Source: BBC News