Tossed owner posts FY2019 loss, cites 'difficult trading conditions'
The company noted Vital Ingredient’s “extremely disappointing” performance.
The group owner of the Tossed restaurant chain reported an operating loss of £3.3 million for the 2019 financial year, citing difficult trading conditions particularly with the “extremely disappointing” performance of its Vital Ingredient stores that were acquired in March 2018.
Zest Food’s balance sheet indicated a higher turnover in the year ended March 2019, £17.9 million from the preceding year’s £9.9m.
However, this was primarily offset by £5.5 million in sales cost and £15.5 million in administrative expenses.
Zest’s earlier plans to restructure via a company voluntary agreement was approved by creditors last December 2019. The move will use all trading Vital Ingredient stores to be rebranded into Tossed outlets.
“The Directors are working closely with all key stakeholders of the business, including landlords, major suppliers and its bank, and believe that the CVA process will secure the long term future of the business,” the company said in their latest financial disclosure.
The company has closed two Tossed stores and turned two Vital Ingredient stores into the former, maintaining the same company-owned store count of 16. It has also ran eight of the latter brand from the original 13 stores since it was acquired in March 2018.
Moreover, the number of franchised stores in the period was 10, including three in Dubai.
