Move follows a previous rescue under examinership
Chefs prepare naan bread at one of Bombay Pantry’s restaurant outlets.
The popular Indian fast food group Bombay Pantry has closed citing “challenging market conditions” that have hampered the hospitality sector.
A liquidator is expected to be appointed to the company behind the business next week.
The parent company, Nutweave Limited, has called a meeting of creditors on Tuesday, December 10. The notice said that Nutweave is proposing to appoint Dessie Morrow and Conor Noone of Azets Ireland as joint liquidators.
Earlier today, Bombay Pantry posted on its website that it would be closing.
“Regretfully, Bombay Pantry has closed as a result of continued challenging market conditions,” it said. “We thank you sincerely for your years of loyal custom.”
The move follows a previous, initially successful rescue effort. In 2022, the company entered examinership before re-emerging from court protection in March 2023.
As examiner Dessie Morrow had helped secure support from creditors and investment from a group including long-term shareholders.
Core to that rescue scheme, which had helped to save 40 jobs and kept the management in place, was an agreement from landlords for a deal that would leaves the business with three of its originally seven property leases. Equipment leases were another significant element of the balance sheet, with relatively light bank debt.
The Irish Independent reported that the decision to opt for a relatively rare Circuit Court Examinership over the new Small Companies Administrative Rescue Process (Scarp) was prompted by the greater time allowed for reorganisation given a desire to find a buyer for part of the business and the need to engage with multiple creditors, including landlords.
Following examinership, the business was reduced from six retail outlets to the four in Glenageary, Rathfarnham, Fairvew and Clonskeagh (trading as Chaat&co). Two other units has closed before the Examinership.
The scheme also included closing a central production unit (CPU) in Kilcoole, Co Wicklow with the loss of 17 jobs after efforts to find a buyer foundered. The CPU supplied some pre-prepared food to the rest of the chain as well as branded and own-brand readymeals that were available in several retailers. It carried significant staff and equipment costs and its annual rent of €64,000 was the highest of any unit in the chain.