Food firms are forced to write off Aikens debts

Debts for his two restaurants total £3million, according to new company accounts. But instead of paying back the money, Aikens put them into administration and arranged for a private equity firm to buy them back.

Neither Tom's Kitchen nor his Chelsea dining room, Tom Aikens, ever closed. The 38-year-old stayed as head chef and a partner under the new arrangement. Buy-back is legal and used as a way to find new investment for businesses that become saddled by unmanageable debt.

The chef was said to have lost a significant portion of his original investment, while suppliers were left out of pocket - some with crippling debts. Macken Bros, a butcher in Chiswick, is believed to have laid off staff because of the size of the debt owed.

Meat, fish and fruit and vegetable suppliers were left with unpaid bills of a total £847,000. Banks are owed £172,000 and HM Revenue lost £711,794. There are also other debts of £692,000.

Private equity-funded TA Holdco acquired Tom's Kitchen and Tom Aikens in October after the chef filed for administration, facing losses of £500,000. His fish and chip restaurant Tom's Place closed last August. Elwy Valley Welsh Lamb has written off the £10,000 it is owed.

Owner William Tilley said: "Tom Aikens's restaurants were writing us cheques which bounced and were just returned to us.

"He has behaved completely dishonourably but, sadly, completely legally. It's an awful lot of money to lose and we certainly won't do business with him again." The technique sees the business sold back to the old owners, but minus the debts and loss-making parts. It is sometimes done with the administrator's consent.

First Choice Fruit and Veg, run by Dan McCullough, supplied Aikens's restaurants with £83,000 of produce that was not paid for. He told the Sunday Times: "The worst thing was after Tom's Place he said he'd repay us.

"I'm hoping I will get it back eventually by being the sole supplier of any future business."

Leslie Ironman, managing director of Southbank Fresh Fish, is owed £8,000. She said: "The way it was done to smaller suppliers was enough not just to put them out of business but to put them out of their home."

Aikens said: "Although it was several months ago, it's still very raw. With suppliers it has been very difficult and we're trying to work things through. We've got over the difficult part and now we're trying to move forward. People can agree or disagree with how the administration works, but it's not been easy. Jobs were saved."