Spaghetti House, which has operated in London for 70 years, has closed all five remaining restaurants after its parent company Lavval Restaurants entered administration, leaving 101 staff redundant
Italian restaurant chain Spaghetti House has closed all its eateries after its parent company fell into administration. Spaghetti House has shuttered its five remaining restaurants across London – in Marble Arch, Carnaby, Oxford Street, Kensington and Soho – and made all 101 staff redundant, with bosses pointing the finger at soaring costs and “difficult” conditions amidst “global instability”.
Lavval Restaurants, the group behind Spaghetti House, appointed corporate finance specialist BTG as administrators on 6 May to assist in winding down the business.
It’s understood that Spaghetti House had already shut three sites in Mayfair, Goodge Street and Fitzrovia in recent months. Founded by Simone Lavarini in 1955, Spaghetti House remained a family-owned business. Its Knightsbridge branch made headlines in 1975 when three robbers held the restaurant’s staff 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 escalating 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, stated: “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.”
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