Corbin & King placed in administration as shareholder dispute intensifies

"It is a power play for the holding company – and we plan to buy it out of administration."

Minor this evening announced that that Geoff Rowley and Ian Corfield, partners at specialist business advisory firm FRP, have been appointed as joint administrators to Corbin & King Limited, the holding company for the Corbin & King Group.

Dillip Rajakarier, Group CEO of Minor International, said: "After all our offers to put the company on a strong financial standing have been rejected by Mr King, we have had no choice but to take the responsible step and put Corbin & King Limited into administration.

"The loans have been in default since May 2020 and we are required to act in the best interest of the company's stakeholders. Contrary to the picture that Mr King is trying to paint, the business is insolvent and is in strong need of further financial support. Minor is prepared to offer this support to secure the long-term future of Corbin & King's employees and restaurants."

Thai-based Minor, which acquired its 74% holding in 2017 with a £58m investment, has said £38m of loans and loan guarantees have been in default since May 2020, with "repeated" offers to recapitalise rejected.

The Caterer understands a significant portion of money owed to Minor relates to the company's initial purchase consideration, which has been called in by the business.

Announcing the administration, Minor said: "In light of the inability to align with Mr King on a sustainable commercial strategy, MINT [Minor International] has been required to act swiftly, for the benefit of all of the company's stakeholders, to find a pragmatic way forward. MINT has taken this decision only after thoroughly considering and exhausting all other realistic options, as is required in the best interests of all stakeholders."

In November, King said relations between the two parties had deteriorated over differences in opinion of what course of action to take through the pandemic. It is understood the restaurateur put forward a proposition to buy the business back from Minor and had a new investor ready to come onboard, but that this proposal was rejected.

Minor hotels purchased most of its stake from private equity firm Graphite Capital, which had invested £21m in the company five years previously.

All Corbin & King restaurants remain open and continue to trade.