Tuesday 21 May 2019 3:27 pm | Updated: Wednesday 05 June 2019 8:34 am

Around 1,000 jobs lost as Jamie Oliver’s restaurant business collapses

Around 1,000 workers have been made redundant after celebrity chef Jamie Oliver's restaurant chain collapsed into administration following failed attempts to secure additional investment.

Jamie's Italian has appointed KPMG as administrators, the company confirmed today, and 23 of the brand's 25 sites have closed.

HSBC, which is the company's main bank lender, is facing a multimillion pound loss following the restaurant chain's collapse, Sky News reported.

Oliver said:“I am deeply saddened by this outcome and would like to thank all of the staff and our suppliers who have put their hearts and souls into this business for over a decade. I appreciate how difficult this is for everyone affected."

The move comes ahead of the August publication date of the celebrity chef's latest book and follows the decision to close 12 of its 37 Jamie's Italian branches as part of a company voluntary arrangement (CVA) last year.

Oliver, who established the Italian food chain in 2008, has pumped £4m in to the business since the beginning of this year to support additional fundraising however, "no suitable investment" was offered.

Will Wright, partner at KPMG and joint administrator, said: "The current trading environment for companies across the casual dining sector is as tough as I’ve ever seen.

"The directors at Jamie Oliver Restaurant Group have worked tirelessly to stabilise the business against a backdrop of rising costs and brittle consumer confidence.

"However, after a sales process which sought to bring new investment into the business proved unsuccessful, the team took the incredibly difficult decision to appoint administrators."

The casual dining sector has faced challenges in recent years including increased competition, soaring rents and consumer uncertainty.

Figures published last month by consulting firm Kantar last month showed that full service restaurants saw sales decline by six per cent in the year to 24 March, as customers favoured experiential outlets and lower-cost venues.

“The high street restaurant sector is changing at an incredible pace and it seems Jamie’s is the latest brand that was not able to keep up," said Simon Mydlowski, a partner at law firm Gordons.

"To be successful in this sector you have to be constantly evolving – from the menus and the drinks choice, to the way you engage with customers.

“A number of suppliers will have been caught unawares here, perhaps showing a little too much trust in the Jamie Oliver name, but this is not the first big restaurant chain to have suffered and it won’t be the last.

"Faced with higher rent, rising food prices and increased competition, restaurants need a point of difference – it’s no coincidence that smaller brands with the freedom and flexibility to keep things fresh are currently the ones performing well.”

Oliver's three restaurants at Gatwick Airport will remain open while administrators explore options for the sites and his international branches will continue to trade as normal.