Financial difficulties of Gino D'Acampo's restaurant empire unveiled prior to intervention
Unfiltered, Unleashed Revelations:
Gino D'Acampo's culinary empire, under the control of Upmarket Leisure Ltd, is in a financial storm, having plunged into administration, as recently unveiled. This crisis came after a wind-up petition from HMRC in March and the appointment of an administrator, which was averted by a £5m deal in May. The breathtaking rescue saved the jobs of all 400 staff in London, Leeds, Liverpool, Newcastle, and Manchester[1].
A more profound look at the financial debacle uncovers substantial obligations. According to administrators Begbies Traynor, Gino D'Acampo's company owed a whopping £11m when it fell apart[2]. Key figures owed substantial sums as of April 2025; Peter Cowgill (ex-JD Sports CEO) was owed over £2.6m, while fellow secured creditor Simon Clarke was owed almost £1.6m[2]. Both secured creditors have since been paid in full[2]. HMRC was owed a staggering £4.2m, with a portion of that debt likely to be recovered[2]. Unsecured creditors stand to lose around £3m[2].
Wondering what led to the company's precipitous slide? The directors' report, filed with Companies House, suggests that the 2024/25 financial performance was expected to significantly outperform reality[3]. However, factors like an unfavorable weather season and a dismal economic climate, along with increasing operational costs, proved detrimental to sales and profitability[3].
A massive investment of more than £2m was poured into new sites and existing locations[3], and costs were inflated due to delays in construction and external factors outside of control[3]. To stave off disaster, a re-forecast was prepared midway through the financial year, which included reducing sales expectations and cutting costs - such as a 50% decrease in central and head office costs[3]. The directors managed to achieve this by utilising various measures like salary cuts, recruitment freezes, and adjustments in working hours[3]. Gino D'Acampo himself graciously waived his brand fees for 12 months[3].
What unfolded next was a series of unfortunate events. In January 2025, the company was waiting for £2.4m in funding from a second investor, which included an initial £500,000 injection by the end of that month[3]. The business had thrived over the Christmas season and had successfully reduced creditor arrears, including meeting its obligations to HMRC[3]. However, a trail of negative press surrounding Gino D'Acampo punctured restaurant sales, diverting management focus for several weeks[3]. This unfavorable publicity also impacted sales, even as they began recovering[3].
Another potential hotel partner paused on a new site in Bath due to this relentless negative pressure[3]. The company had embarked on its first international location in Malta with Melia, but delays prolonged the project and incurred additional costs[3]. Consequently, it was decided that the project couldn't be managed under a lease due to the elevated costs and risks[3]. A switch to a management and franchise agreement was negotiated to maintain returns and avoid further losses[3]. Yet, the essential investment failed to materialize, primarily due to personal circumstances and the lingering negative media attention[3]. With challenging trading periods continuing and external pressures mounting, the directors had no choice but to seek professional insolvency advice.
Sources:
- BBC News, "Gino D'Acampo's restaurants company saved," (May 6, 2025), https://www.bbc.com/news/uk-england-manchester-56966391
- The Sun, "Gino D'Acampo's restaurant empire owed £11m before collapsing into administration," (June 4, 2025), https://www.thesun.co.uk/tvandshowbiz/18190403/gino-dacampo-restaurant-empire-owed-11m-administration/
- North West Business Insider, "How Gino D'Acampo's restaurant empire collapsed into administration," (June 6, 2025), https://www.insidermedia.co.uk/business-insider/insights/how-did-gino-dacampos-restaurant-empire-collapse-administration-3583648
- Amidst the financial crisis of Gino D'Acampo's culinary empire, one might find a connection between the world of sports and business, considering the significant debt owed by the company to former JD Sports CEO, Peter Cowgill.
- In the realm of pop-culture and entertainment, the fall of Gino D'Acampo's empire could be seen as a cautionary tale, showcasing the risks and challenges faced by celebrities when venturing into the business sector, particularly in the food industry.
- The financial struggles of Gino D'Acampo's culinary empire are not isolated incidents in the world of finance and business. His predicament bears resemblance to the challenges faced by large entertainment ventures, exemplifying how external factors such as unfavorable weather, economic downturn, and negative publicity can impact profitability and survival.
