Celebrity chef Jamie Oliver withdraws 5.2 million pounds as the British chain folds

Jamie Oliver received a payout of £ 5.2 million despite profits in the restaurant, food and media group which nearly halved last year when the celebrity chef's British chain collapsed.

Pre-tax profit for the entire group, which covers restaurant, licensing and media operations, fell from £ 14.5 million in 2017 to £ 8 million the year to the end of 2018 as a result of extraordinary costs of £ 9.9 million from the error.

Jamie's Italian went into administration in May after a rapid expansion resulted in high rental and business prices. Between 2015 and 201[ads1]6, the chain fell from a profit of £ 2.4 million before tax to a loss of £ 9.9 million before tax.

The parent company reported profit before interest, tax, depreciation and amortization – the preferred profit target – of £ 17.8 million in 2018, an increase of 4.9 per cent from the previous year.

Oliver injected 25 million of his own money into the British restaurant business before it collapsed. More than 1,000 employees lost their jobs.

Random dining groups in the UK have suffered in recent years as expansion of private equity has led to over-saturation of the market. A combination of higher rents, prices and staff costs and a transition from consumers to food delivery has resulted in chains including Prezzo, Giraffe and Byron Burger carrying out insolvency processes.

This month, the healthy food chain Abokado was the latest to announce that it would undertake a debt settlement process citing "unexpected" market dynamics and online banking fraud, which the company said it was investigating.

Paul Hunt, CEO of Jamie Oliver Holdings, said that "the strength of the Jamie Oliver portfolio allowed the group to weather the challenges of 2018, which means we were able to deliver a resilient set of results." [19659002] Despite the failure of the UK business, the group has continued to expand its restaurant brand overseas through a franchise model, opening three new sites in 2018 in Portugal, Dubai and Qatar.

"International expansion is going to be bigger and bigger theme with British restaurant groups, "said Graeme Smith, CEO of AlixPartners." A strong British brand in the right market travels well, especially in gateway cities. "

The international business, which was a subsidiary of the UK restaurant group in May has taken on £ 22.5m of debt from the UK chain, falling from a £ 2.2m pre-tax profit in 2017 to a loss of £ 6.5m lions of pounds as a result.

The profits of the group's licensing arm, which includes the chef's sandwich and healthy eating areas with Shell and Tesco, were down 16 per cent to £ 5.5 million due to discontinued promotion and brand damage from the chain's closure.

Oliver and his wife, who jointly own Jamie Oliver Holdings, received a dividend of £ 5.2 million, down from £ 8.6 million in 2017.

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