Jobs saved as Fazenda is bought out of administration
MORE THAN 200 jobs have been saved at Fazenda after the Yorkshire restaurant chain was bought out of administration.
Julian Pitts and Bob Maxwell of Begbies Traynor in Leeds were appointed joint administrators of City District Limited, which trades as the Fazenda Rodizio Bar & Grill alongside sister brand Picanha by Fazenda, on Monday.
A substantial part of the business and assets of City District was acquired immediately by Southern Wind Group Limited, saving 243 jobs.
Founded in 2010, the Huddersfield-based company operated six South American gaucho-style grilling and Rodizio dining restaurants under the Fazenda and Picanha brands which are known for the concept of continuous tableside service of grilled meats.
In a statement, the administrators said the business had suffered from the impact of prolonged lockdowns and restrictions caused by Covid-19.
This resulted in a significant build-up of landlord and HMRC arrears which could no longer be serviced without additional funding.
After a period of marketing undertaken by Begbies Traynor Group, a pre-packaged sale was agreed to Southern Wind Group.
The new company, headed up by City District’s former chief executive Terence Langley and managing director Tomás Maunier, will continue to trade as Fazenda and will retain the Leeds, Manchester, Edinburgh and Liverpool Fazenda sites, saving 243 jobs.
However, Fazenda Birmingham and Picanha Chester are not included in the deal and 69 staff will be made redundant.
Mr Pitts said: “After more than 10 years of healthy trading, the Fazenda restaurant chain became yet another casualty of the impact of the pandemic on the hospitality sector.
“With the UK undergoing multiple lockdowns, together with social distancing measures and increased working from home, the restaurant trade has faced one of its toughest periods ever.”
Mr Maunier added: “Unfortunately, rent negotiations and significantly reduced cash flow has led to this difficult decision to close two of the restaurants. The hardest part is that we were unable to retain the whole team.”
Addleshaw Goddard’s restructuring team in Leeds and Edinburgh advised the joint administrators. Walker Morris in Leeds advised Southern Wind Group. The acquisition includes e-commerce business Fazenda at Home.