An Italian restaurant chain has shut all its outlets after its parent company went into administration. Spaghetti House has closed its five remaining locations across London - in Marble Arch, Carnaby, Oxford Street, Kensington and Soho - and made all 101 employees redundant, with bosses citing rising costs and "difficult" trading conditions amidst "global instability".
Lavval Restaurants, the group operating Spaghetti House, appointed corporate finance specialist BTG as administrators on May 6 to assist in winding down the business. It is understood that Spaghetti House had already shut three venues in Mayfair, Goodge Street and Fitzrovia in recent months. Spaghetti House was established by Simone Lavarini in 1955 and stayed family-owned.
Its Knightsbridge location made headlines in 1975 when three robbers held the restaurant's employees hostage following a botched robbery, reports the Mirror.
Luigi Lavarini, executive chairman and chief executive of Lavval Restaurants, said: "After 70 years of serving our loyal customers, it is with a heavy heart that we announce Lavval Restaurants Limited has entered administration and will cease trading.
"Years of increasing costs from the pandemic, Brexit, Government budgets and global instability have created difficult market conditions for hospitality. Balancing these costs with reduced demand and spending from customers as they navigate the rising cost of living has proven too challenging.
"Despite best efforts and seeking professional advice, we have had to make this difficult but necessary decision to wind down our business."
Asher Miller, partner at BTG, said: "After a number of years of challenging market conditions worsened by soaring operational, employment, energy and tax costs affecting the hospitality industry, the directors of Lavval Restaurants approached BTG for advice on their available options.
"Unfortunately, despite their best efforts, the directors made the difficult decision to enter administration and appoint us to manage the controlled wind down of the business."
The Daily Express has contacted Spaghetti House for comment.
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