Wolseley owner Corbin & King goes into administration amid icy tensions with shareholder
The firm behind high-end London restaurants including the Wolseley and the Delaunay has fallen victim to the pandemic and entered into administration.
Administrators from FRP have been appointed for Corbin & King, it was reported last night. Daily operations will not be impacted and restaurants will continue trading.
Hospitality venues in the capital have struggled with rising operational costs while consumer confidence has waned throughout different phases of the pandemic.
There has been an icy relationship between the restaurant group’s management and its largest shareholder, the Thai hospitality firm Minor International, which has a 74 per cent stake.
Minor International said the business was no longer solvent while founder Jeremy King told The Financial Times it was trading “extremely well” with “absolutely no need” to enter administration.
The shareholder said it had lent the restaurant group £38m in loans and loan guarantees since May 2020 and claimed Corbin & King has failed its financial obligations.
The restaurant operators had moved to file a high court motion to prevent Minor International from calling in its loan, as this would have made the firm insolvent, the Sunday Times reported.
Speaking to the Guardian newspaper, Dillip Rajakarier, the group chief executive of Minor International, said there had been no choice other than placing Corbin & King into administration.
Rajakarier said: “Contrary to the picture that Mr King is trying to paint, the business is insolvent and is in strong need of further financial support. Minor is prepared to offer this support to secure the long-term future of Corbin & King’s employees and restaurants.”