http://www.bloomberg.com/apps/news?pid=20601088&sid=aRyTe8Z__7qs July 2 (Bloomberg) -- Gordon Ramsay’s London restaurant business swung to a loss last year as the chef closed eateries - - including Angela Hartnett at the Connaught -- and sales fell.
Gordon Ramsay Holdings Ltd. lost a net 100,063 pounds ($163,733) in the year ended last Aug. 31, compared with a profit of 1.37 million pounds a year earlier. Revenue declined to 35.6 million pounds from 41.6 million pounds, the company said today.
Ramsay, known for his gourmet food and his television tirades, is seeking to get his businesses back onto profit after rapid international expansion almost forced him into administration last year, the chef told the Sunday Times in May. Angela Hartnett at the Connaught closed and the Savoy Grill shut for refurbishment during the year. Petrus has lost its home in the Berkeley Hotel and La Noisette has failed.
“Revenues for the period were lower as a result of the end of lease at the Connaught and the closure of the Savoy Grill,” the company said today in accounts sent by e-mail. “After a turbulent year, the group’s profit before tax was 383,326 pounds, with robust trading to date in 2009 as a result of strong performance in core sites, which will significantly improve profitability in 2009.”
Ramsay’s spokeswoman, Jo Barnes, said the chef was traveling overseas and wouldn’t be available for comment.
Loans Extended
Royal Bank of Scotland Group Plc agreed in principle this week to extend the maturity of loans to May 2011, with repayments commencing in September 2009, the company said. Net debt rose to 9.48 million pounds on Aug. 31 from 4.06 million pounds a year earlier. Last year, Ramsay Holdings breached covenants on loans.
As of Aug. 31, Ramsay had given guarantees of 3.5 million pounds, while Chief Executive Chris Hutcheson, his father in law, had guaranteed 1.5 million pounds, the company said.
Ramsay has opened restaurants around the world -- including a new establishment in West Hollywood -- and is now counting the cost of its rapid expansion. Earlier this year, the company said it is ceding control of some venues, including in New York, and will future operate them as a consultancy.
(Richard Vines is the chief food critic for Bloomberg News. Opinions expressed are his own.)
