Ramsay Profits Fell Almost 90%
Has Ramsay fallen from grace? (Photo by Creative Commons user Jo-H)
Profits at Gordon Ramsay’s UK restaurants plunged almost 90 per cent in a “turbulent” year in which the celebrity chef was forced to pump his own money into the business.
Ramsay’s latest company accounts show that the restaurant empire came close to the brink as revenues collapsed while debt and tax bills mounted up.
The precarious situation caused the TV chef and his father-in- law and business partner Chris Hutcheson to inject pound(s)5 million ([euro]5.84m) into the business.
Ramsay’s problems were blamed on ambitious expansion as well as the closure of key London restaurants like the Savoy as pre-tax profits tumbled from pound(s)3.05 million ([euro]3.6m) in 2007 to pound(s)383,325 ([euro]448,000).
The Savoy Grill was shut because of refurbishment at its host hotel, while the Connaught lease expired.
The two restaurants alone accounted for a pound(s)9.5 million ([euro]11.11m) reduction in revenues.
A statement from the firm yesterday said that, after a restructuring of operations, it was confident the group had “successfully undergone change for the better” and was now “well- placed to grow its operation with a more stable capital base and a more manageable overall structure”.
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