Eat founders step down after stores are closed

THE founders of the Eat chain plan to resign following a restructuring that has resulted in the closure of almost 10 per cent of its sandwich shops.

Former hedge fund manager Niall MacArthur and his wife Faith, who launched Eat in 1996, are expected to step down as directors next week and will no longer have any involvement running the firm.

Accountancy firm KPMG was appointed earlier this year to advise on a restructuring. Losses more than doubled to £3.7 million due to rising rents, steep business rates and the cost of ingredients.

Following a review of its stores, it has quietly closed ten of its 110 sandwich shops over the last two months, including sites in Cardiff and Glasgow.

However, it avoided a CVA – a controversial insolvency process designed to help struggling companies rearrange debts.

Eat’s management, led by chief executive Andrew Walker, stopped working with KPMG in April.

The company now plans to open five sites overseas this year – in Malaga, Barcelona, Paris, Nantes and Bahrain.

The MacArthurs will remain minority shareholders, but their stake is expected to fall.

Eat is controlled by private equity firm Lyceum Capital, which bought a stake worth ‘tens of millions’ of pounds in 2011 and said it wanted to expand to 300 stores.

Its menus are designed by former Masterchef finalist Arnaud Kaziewicz.