Simmons, a London-based cocktail chain, has entered administration and announced plans to close at least four sites, becoming the latest casualty of the significant cost pressures facing hospitality businesses.
The upscale bar group, which operated over 20 venues across the UK, has appointed advisory firm Kroll to oversee the administration process, according to company filings, as reported by City AM.
In its most recent audited accounts, Simmons reported a loss of £749,000 for the year ending March 2024, a stark contrast to the profit of just under £2m it made the previous year. Last week, Simmons revealed plans to close at least four sites, including a venue in Putney, London, but maintained that it had secured the necessary funding to keep the remaining locations operational.
“As part of the process, we’ve taken the tough decision to exit four leases, allowing management to focus resources on our strongest performing venues,” said founder Nick Campbell. “Alongside this, we’ve secured additional investment to support future expansion and operational improvements across the estate.”
Campbell did not respond to a request for comment regarding how the company would be financed, but told City AM that it was “incredibly disrespectful” to question employees about the business’s status.
Simmons joins an increasing number of hospitality groups that have either collapsed, entered administration or significantly scaled back operations due to soaring costs and reduced consumer demand. This includes steep increases to employers’ National Insurance Contributions introduced in April, as well as diminished relief on business rates.
The British Beer and Pub Association (BBPA) has projected that 378 pubs will shut down this year across England, Wales and Scotland – more than one per day on average – resulting in over 5,600 job losses.
Kate Nicholls, chair of UK Hospitality, told City AM: “Sadly the news of further closures and business failures is all too common at the moment.”
“Our last survey showed that half of London hospitality businesses are operating at or below break even – up from a third since the Budget. That’s because the costs of doing business – rent, rates, employment – are much higher in the Capital but we have yet to see footfall and visitor numbers recover to pre Covid levels.”
“Put simply the money coming through the front door is not enough to cover costs and as a result businesses are running out of road – they are being literally taxed out.”
