UK Hooters closes as critics say enterprise can be ‘unlawful’ and ‘morally repugnant’
Workers at the shuttered Liverpool bar say they’re still waiting for their final pay packet, as well as some tips that have been held back since August, after bosses closed its doors last weekend
The Hooters sign being taken down on Water Street.(Pic Andrew Teebay)(Image: Andrew Teebay Liverpool Echo)
A former part-time waitress at Liverpool’s now-shuttered Hooters restaurant says she is still waiting for her final wages, alongside tips that have been held back since August. The iconic American bar closed its doors on Sunday (January 11).
The Unite union says it would be “unlawful” if a similar business is reopened as a phoenix venture. The operating company, New Zealand Leisure Ltd. , has made all employees redundant, telling staff to get their final wages and other redundancy commitments from the Government.
The sole owner of the restaurant, Barry Morris, immediately established a fresh company called Water Street Hospitality Ltd. on January 2.
A bailiff’s notice can now be seen on the window of the once-bustling venue, and the landlord has changed the locks, meaning the restaurant is now gone for good. The establishment had been only the second branch of the American chain to launch in the UK and had attracted punters from across the country.
Mr Morris had told the Liverpool Echo of his intentions to launch a new hospitality venture at the same location, describing himself as a “Scouse family man” eager to “create a more inclusive concept”. A former employee have expressed concern that Mr Morris’ vision for the replacement venue may retain several elements of the controversial franchise, though there is no evidence that any new business has yet engaged in similar practices.
Mr Morris added that the decision to go into liquidation was made due to “sustained financial pressure” and assured that employee entitlements are “being handled through the proper statutory processes”. However, according to Companies House, New Zealand Leisure Ltd. is currently listed as active, with no filing for liquidation at this time.
He also mentioned that there had been “early discussions” about a potential “possible rebrand and reopening”, but clarified that there was “nothing in place that would constitute a continuation of the former business”. Bryan Simpson, hospitality lead for the Unite union, warned that “to close a company, sack the workforce, dump unpaid wages and redundancy onto the state, and then reopen the same business under the same control is unlawful under the Employment Rights Act 1996, the TUPE Regulations 2006, and the Insolvency Act 1986.”
He added: “It is also morally repugnant; this is exactly the kind of phoenix-behaviour these laws are meant to prevent, yet it continues to happen in hospitality with near impunity.” Unite’s statement refers to what could happen if a similar business is reopened, rather than what has already occurred.
A former part-time waitress at the bar claims that she was owed nearly £1,000 in tips and service charges that management hadn’t paid since August. According to the Employment Act 2023, known as the “Fair Tips Act”, all tips, gratuities and service charges must be paid to workers without any deductions.
The worker, who wanted to remain anonymous, said: “Around summer, we noticed the restaurant wasn’t as busy. Sometimes we’d be sat there for hours without customers.
“We used to get tips and service charges paid once a month, then we were told to download an app and started getting taxed on them. Then we were problems with the app and the payments were falling further and further behind.
“By December, we were still owed service charges from back in August. She claimed that some staff could make up to £1,000 a week on tips, and said she personally was struggling for money around Christmas.
“We’re all really stressed; some of the girls who’ve worked there from the beginning have loved working there. They’re heartbroken — one of the girls can’t pay her rent; I can’t see how the new business will work.”
In a message to staff, Mr Morris wrote: “With immediate effect, New Zealand Leisure Ltd has ceased trading and is entering liquidation — as a result, all roles have unfortunately been made redundant as of today. I know this news is upsetting and stressful, and I am genuinely sorry for the impact this has on you.”
Morris added that while there was a potential for the business to reopen “at some point in the future”, there were no specific plans that could be realised in the coming months. He added that he was given professional advice to close the bar and liquidate the premises, which helped to inform his decision.
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