Future of restaurant chain Wasabi in doubt as accounts show it was fighting for survival before pandemic
The future of Wasabi is in doubt after accounts showed it was fighting for survival even before the pandemic.
The chain of Japanese restaurants, which employs 1,700 staff, has been closed in line with the Government lockdown.
In its most recent accounts, its parent company revealed losses of more than £15million over the last two years. It also revealed it has to repay bank loans of £25million in the next two years.
In a pickle: The Wasabi chain of Japanese restaurants, which employ 1,700 staff, has been closed in line with the Government lockdown
The accounts, released at the end of March, have raised concerns it will be the next casualty, saying there is ‘significant doubt’ over the ‘company’s ability to continue as a going concern’.
Its plight comes as restaurants, pubs and cafes were told they would have to remain closed for at least another three weeks.
Carluccio’s and Mexican chain Chiquito quickly fell into administration after the lockdown, and it is thought that other brands, many of which are owned by private equity firms, may not survive.
Wasabi has more than 50 branches in the UK. In the year to December 2018, it lost £8.5million, compared to £7.1million for the previous year, despite turnover up to £106million from £115million.
Yesterday celebrity chef Yotam Ottolenghi called for a six-month ‘time-out’ on rent and commercial landlord mortgages to protect Britain’s restaurant industry.
He said: ‘Restaurants are one of the backbones of the economy and a cultural institution.’