Handmade pie retailer and restaurant operator, Square Pie has announced the closure of all of its sites - four in London and one in Birmingham - after falling into administration, with around 50 jobs axed.
The Hackney-based group said that a “perfect storm” of falling retail demand together with rising rents, rates, increased staffing costs and food price inflation, have all contributed to its downfall.
Accountancy firm KMPG tried to find a buyer for the restaurant side of the business but were forced to immediately close the loss-making restaurants in London’s Westfield White City, Westfield Stratford, The O2 Greenwich, Vue Leicester Square and Birmingham’s Grand Central.
Husband and wife team, Martin and Lucy Dewey founded the company in 2001, which was started as a food stall in London’s Spitalfields market. Martin Dewey said, “Following a month-long process, in conjunction with KPMG, to market the restaurants and the business as a whole to potential food sector buyers across the UK, we were unable to attract any party to make an offer to acquire the whole business as a going concern.
“The collapse of the restaurant business was something we were desperate to avoid, and we were hopeful even as recently as last weekend that we could save the stores and the jobs, but unfortunately the backing didn’t materialise in the current leisure climate.
“Together with my colleagues, we worked tirelessly for over 15 years to create a fantastic brand, and I am devastated that we couldn’t make the restaurants work in the current economy. Whilst the wholesale side of the business remained viable, in the end we ran out of money to put into the business to keep the outlets.
Last year, Square Pie raised only £100k of a £1m target in equity funding, and so the company’s directors issue loans that saw the group launch Square & Co to help turn around the company's results. Opened at Bluewater shopping Centre in Dartford, Kent, the new concept served up street food along with the classic Square Pie menu.
Square Pie’s wholesale division will continue to trade after angel investor and entrepreneur Oliver Wessely acquired a majority stake in a new venture, Beat Foods, that has bought the rights to produce Square Pie products for its grocery and wholesale customers for a six-figure sum.
The wholesale branch has catered for sites including: Manchester United, Virgin Atlantic Upper Class, Wimbledon Lawn Tennis, Twickenham Rugby and the Olympic Stadium. Luke Morgan, who joined Square Pie in October last year, will become managing director of Beat Foods, which will be headquartered in Nantwich, Cheshire.