Le Pain Quotidien enters administration with loss of 250 jobs
Belgian cafe chain Le Pain Quotidien has closed all but one of its UK sites and entered administration with the loss of 250 jobs.
The group's eight London cafes and its site in Oxford's Westgate centre have all closed their doors.
However, its cafe at London's St Pancras International station continues to trade as it is run by sister company SPQ Holdings Ltd.
Restructuring specialist Kroll said Le Pain Quotidien had struggled with a drop in sales due to reduced footfall in London, as well as rising rents and wage costs.
It is understood that the company explored several options to continue as a going concern, including a Company Voluntary Arrangement (CVA) and a sale of the business.
However, no viable offers were received, and it ceased trading on 29 June.
Sarah Rayment and Phil Dakin of Kroll were appointed joint administrators of BrunchCo UK Limited, which trades as Le Pain Quotidien in the UK, on 30 June.
BrunchCo acquired the business out of administration in June 2020.
Rayment said: "Pressures on parts of the hospitality and casual dining sector have been well highlighted.
"BrunchCo UK Limited which is predominantly located in London has suffered from reduced revenues as a result of decreased footfall in the capital, high rents and increased wage costs.
"As part of the next steps of the insolvency, we will be looking to realise value from the Company's leasehold interests and other assets."
Le Pain Quotidien, which is French for ‘the daily bread', was founded in Brussels in 1990 and trades from more than 260 locations worldwide.
Its sites are notable for their long, wooden communal tables and baked goods, sandwiches and tartines.
The group's US arm shut its 98 cafes and filed for Chapter 11 bankruptcy in May 2020, although around 50 sites have since reopened.
Image: Andriy Blokhin / Shutterstock
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