ICSM Hospitality Insolvency News: U-Turn on pub business rates; TGI on the brink; Leon in trouble; Pizza Hut cut in half after sale

By Harry Mottram: With the news the Government is to change how pub business rates are calculated there’s been a sigh of relief from many in the hospitality industry although opposition politicians have said it is too little too late. Simon Jack of the BBC reported that Emma McClarkin, chief executive of the British Beer and Pub Association, said it was "potentially a huge win" for the sector. "This could save locals, jobs, and means publicans can breathe a huge sigh of relief," she said. While Kate Nicholls, chair of UK Hospitality, representing the industry, said the relief should apply not just to pubs, but to all hospitality businesses affected, including cafes and restaurants. "We need a hospitality-wide solution, which is why the government should implement the maximum possible 20p discount to the multiplier for all hospitality properties," she said.

The plans will roll back the Chancellor of the Exchequer Rachel Reeves’ budget which was to cut discounts for pub business rates. Combined with inflation, interest rates and the Cost of Living Crisis which has seen punters staying home to save money the hospitality sector have lobbied the Treasury with some pubs even banning MPs from being served. Ian Carrotte of ICSM said that perhaps depriving a Labour MP from his pub pint has worked. He said: "The Night Time Economy is estimated to be 20% of consumer spend - with eating out a big chunk of that. A down turn in the sector hits their suppliers but also the wider economy from printers and sign makers to landlords to businesses near by."

TGI Fridays

Industry insiders predict that TGI Fridays will be sold this month in a pre-pack with many of the restaurants closed and as many as 2,000 staff made redundant. What that means for suppliers chasing unpaid invoices is unclear since most pre-packs are a seen by some as method to dump debt by the new owners. Last year Sugarloaf is led by Ray Blanchette, who previously ran TGI Fridays for five years acquired the chain from Breal Capital and Calveton UK but have since decided to sell. In late 2025 they filed their intention to appoint administrators but have repeatedly delayed doing that leaving some to speculate the pre-pack be delayed further. A TGI Fridays spokesperson told The Caterer earlier this week: “TGI Fridays UK is still assessing all options for the future of the business. No decisions have been made yet and locations continue to operate as usual.” The firm is considered to have major problems by industry analysists with historic debt, falling customer numbers and a mix of sites with some in profit and others in trouble.

Leon News

The fast-food chain have appointed administrators at Quantuma  with the aim to restructure and potentially close the loss-making outlets with a plan to save the profitable ones. The business has 44 sites across the UK and has 22 franchises and has concentrated on creating healthy eating with an accent on the Mediterranean diet. High rents are thought to be behind one of the reasons it has got into trouble while the owners have said unsustainable taxes are another issue. The company set up in 2004 by Mr Dimbleby, John Vincent and chef, Allegra McEvedy. ICSM understands that the chain will try to exit the administration using a CVA.

Pizza Hut

American hospitality giant Yum! Brands have rescued the pizza restaurant chain that entered administration in the autumn. The taxman filed a winding up petition for unpaid tax last September which forced the issue and FTI were soon afterwards appointed as administrators by DC London Pie Ltd, the business established to manage Pizza Hut UK following a pre-pack agreement. The seal will see about half of the 130 outlets kept open keeping more than 1,200 jobs – but essentially closing half of the restaurants.

​Historic debt, taxation, increased competition from upmarket pizza restaurants and a drop in footfall as families feel the pinch has seen the all-you-can-eat model struggle with costs.

More closures

The London based cocktail bar chain Simmon entered administration last year after making a £749,000 loss. The British Beer and Pub Association (BBPA) has estimated that 378 pubs will close this year across England, Wales and Scotland – more than one per day on average – amounting to more than 5,600 job losses. Last year also saw the end of Petersham Nurseries' Covent Garden location, featuring restaurants like The Petersham and La Goccia, along with its florist, deli, and shop while Nick Nairn’s Kailyard restaurant at Dunblane Hydro Hotel is also set to shut down this year. Last Christmas failed to save Chiswick Indian restaurant Annapurna which closed in December for good while seafood restaurant group Lussmanns has undergone a pre-pack administration and closed two of its seven restaurants. And just to add to the depression Nathan Outlaw will close his Michelin-starred restaurant Outlaw’s New Road this year.

Struggling with Late Payers or Bad Debt?

ICSM offers expert credit management and debt recovery solutions that help businesses like yours get paid fast.

• Free online suite of legal letters and final demands
• Specialist team ready to recover unpaid invoices
• Polite, professional mediation to preserve customer relationships
• Hardline legal options when needed
• Late payment interest, compensation, and fees recovered under the Late Payment of Commercial Debts Regulations 2002

Why Act Early?
Passing overdue accounts to ICSM early increases your chances of full recovery. Our multi-channel approach—calls, emails, and letters—ensures the right message reaches the right people at the right time.
We understand that non-payment often stems from miscommunication. That’s why we focus on resolving issues while protecting your reputation.

• Email: yateadmin@icsmcredit.com
• Call: 01454 322234
• www.icsmcredit.com
• Express Park, Bridgwater, Somerset, UK