Square Pie falls into administration

It has announced the closure of all of its sites, with around 50 jobs axed.

With five locations in the UK, the Hackney-based group said that a “perfect storm” of falling retail demand together with rising rents, rates, increased staffing costs and food price inflation, have all contributed to its downfall.

Accountancy firm KMPG tried to find a buyer for the restaurant side of the business but were forced to immediately close the loss-making restaurants in London’s Westfield White City, Westfield Stratford, The O2 Greenwich, Vue Leicester Square and Birmingham’s Grand Central.

Founder Martin Dewey said, “Following a month-long process, in conjunction with KPMG, to market the restaurants and the business as a whole to potential food sector buyers across the UK, we were unable to attract any party to make an offer to acquire the whole business as a going concern.

“The collapse of the restaurant business was something we were desperate to avoid, and we were hopeful even as recently as last weekend that we could save the stores and the jobs, but unfortunately the backing didn’t materialise in the current leisure climate. Together with my colleagues, we worked tirelessly for over 15 years to create a fantastic brand, and I am devastated that we couldn’t make the restaurants work in the current economy. Whilst the wholesale side of the business remained viable, in the end we ran out of money to put into the business to keep the outlets," he added.