Tootsies folds after Clapham House hires administrators
TOOTSIES, the restaurant chain, yesterday fell casualty to the credit crunch after its parent Clapham House called the administrators in.
Clapham House said it had put Tootsies into administration because “there was little prospect of the Tootsies business as a whole generating a profit in the near future”.
The group said it was acting to “protect the company’s profitable Gourmet Burger Kitchen and The Real Greek businesses as well as its shareholders and the majority of its staff”.
Administrator BDO Stoy Hayward said that it was in the process of selling 11 of the 21 units currently operated by Tootsies for £25m to Giraffe, the family-friendly restaurant chain backed by Luke Johnson and private equity house 3i.
David Page, chairman of Clapham House, said: “We have taken the steps described in this announcement with great regret, having spent considerable time researching alternative strategic options for Tootsies.”
Tootsies was a pioneer in the burger restaurant space when it opened in 1971 but has recently struggled against upmarket rivals, including, ironically, Clapham House’s own Gourmet Burger Kitchen.