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Food firms are forced to write off Aikens debts
Mark Blunden12.01.09
SUPPLIERS owed almost £900,000 by Tom Aikens today spoke out after the celebrity chef was able to continue trading when his business failed.
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."
Reader views (14)
So many wannabee celebrety chefs. They believed the good times would roll on forever and ever, and they could open trendy restaurant after trendy restaurant, without limit. Its really just an extension of the culture of celebrety and greed, where everyone wanted to live like their idols from the pages of Hello, and buy now, pay later. I doubt his restaurant will survive.
- Eric, London
It's not an unusual situation. The whole system needs serious sorting out, the only people who suffer from this are the small business.
There are some serial failures where companies fail on a repeated basis. Sadly client keep using them which give suppliers little option to keep supplying them, on the hope that you will get money back.
One company I know has failed 4 times in the last 6 years, the banks get tjeir oney, the recievers get paid but the small companies do not.
The law needs changing to make sure that all creditors get something, not just the banks and the administrators (at £400 per hour!).
- John Whitby, Peterborough, Cambs
unfortunately some suppliers who maybe a bit green think they are on to a winner because these chefs are in the limelight.Its good for them to be able to say they supply a succesfull brand or name,i can only think they just let it go on fearing they would lose the whole lot if they refused anymore credit.And they certainly would have as he would have simply switched to another supplier.
what sort of a business man imports extremely expensive marble from italy to deck out a fish and chip shop? Answer
could be an extremely selfish one with a massive ego and a load of rich mates.
- Mark, london
This is the new trend.
Nobody is responsible, the company goes in administration, debt are wiped out and it's all fine. They are all doing it, and some even manage to get bailed out by the tax payer in the process.
Now I wonder what is the value of his houses. Probably equals to the debts. I doubt that he forgot to pay himself salaries before closing down.
We, the honest people are just the dumb ones.
Every body else is stealing, lying and having a great time at it.
Crime Pays.
Looking forward to my interview at the job center, trying to explain to them after loosing my job because of people like him.
"I want to be a criminal, can New Deal help me setting up a scam for ripping off honest people? Please help me, because so far I am too dumb honest. I need training, something in banking, in pension management, or administration, or in the government. These provide the best training. I have checked their records. They are very good at it."
- Lauren, London Curb Uk
Too many chefs in this country!
- Matthew, Cheltenham/Cornwall/London
The smaller suppliers should have been more realistic about the real possibility they would never be paid. However, awider issue is that this story is another illustration of the is thge way the law continually beneifts cheats and larger organisations and totally fails to support tiny companies or individuals. This attitude is one reason why we are all in the financial mess made by global conglomerates which are even now being fished out of the soup by the tax payer who never seems to learn the lesson.
- Helen, norwich
This seems to be something practiced a lot these days and is outrageous. The law needs amending to prevent this behaviour. Thank you for printing this ES I'll not ever eat at any establishments this person may have an interest in either now or in the future. Hopefully, other readers will feel the same way.
- Raymond, london
I want to know why the supplier lets him knock up £83000 of fruit and veg debt. Thats a hell of a lot of tomatos and cucumbers. Surely there is a point where the supplier stops supplying unless payment is received.
- Jon, Radlett
He may still be in business but nobody will supply him on credit. From now on it will be strictly "cash-in-advance" - that will do nicely.
- Peter Sykes, Pirot, Serbia
Hopefully not only will suppliers remember this but also customers. Maybe lots of bookings but 'no shows'. What he did was one step too far.
- Antoine Desmoines, London, UK
Let's hope that the industry remembers this when he tries for credit with suppliers under his new guise.
- Sandy, London
This is called limited liability, the basis of capitalism. Some people might call it legal theft.
- Mick, London, England
He's just a petty little crooked cook.
- Fred, London UK
Next time I leave without paying at a Tom Aikens, restaurant, I'll refer them to the administrator!
- Jane, London
