Wed, 03 May 2023 | BUSINESS SALE
London pizza chain Mamma Dough has been acquired out of administration in a deal that saves the majority of jobs at the company, but will see two of its seven restaurants close. The chain entered administration in December 2022 after being hit by a range of adverse conditions.
The company, which was founded in 2014, had been preparing to undertake a growth strategy as it sought to expand across London and further around the UK, utilising a franchise model that had been launched in 2021.
However, its operations were then hit by soaring inflation and rising energy bills, which, combined with plummeting consumer sentiment amid the cost-of-living crisis and the impact of train strikes on footfall, pushed it into administration.
David Birne and Stephen Katz of Begbies Traynor were subsequently appointed as joint administrators on December 20 2022. The joint administrators have now secured a sale of the business to London Dough Co, a new company owned by the directors of The Exhibit bar in Balham.
The acquisition involves five of the brand’s restaurants in South London – Peckham, Brixton, Sydenham, South Norwood and Ladywell – however, sites in Tooting and Whitechapel were not included in the deal and are now set to close. A spokesperson for the joint administrators said that “a number of staff” at the two impacted sites have been redeployed to other restaurants.
Joint administrator Stephen Katz said: “We are delighted to have successfully secured a positive outcome for the majority of the staff at Mamma Dough and to enable this previously growing business to continue to operate following one of the toughest periods to be a consumer-facing business.”
In Mamma Dough Limited’s most recent accounts at Companies House, covering the year to December 31 2021, its non-current assets were valued at £546,382 and current assets at £339,354. The company’s liabilities at the time amounted to £323,295 and its total equity stood at £145,712.
Download our free guide: How to find and buy distressed businesses and assets
Read about the headwinds currently impacting UK hospitality firms.
View recent administrations.
Modern Turkish restaurant and cocktail bar situated in a parade, excellent trading position, residential, office and commercial area.
LEASEHOLD
Presenting a licenced restaurant for live events, occupying a corner position, with excellent main road trading position, within a residential and commercial area in Surrey.
LEASEHOLD
On the market a rare riverside pub restaurant located in popular hamlet near leisure, camping, caravan, park homes and waterside activities. This is a sound profitable, growing business with substantial net sales per annum.
Please choose your settings for this site below. For more information please read our Cookie Policy
These cookies are necessary for our website to function properly and provide you with access to all features.
These are analytics cookies that help us to improve the way our website works.
These are used to improve the functional performance of the website and make it easier for you to use.