London's cocktail establishment Simmons files for administration, leading to multiple venue shutdowns

London Cocktail Chain Simmons Enters Administration

In a significant development for the UK's hospitality industry, Simmons, a popular London-based cocktail chain, has entered administration. This move adds Simmons to a growing list of hospitality groups facing financial challenges.

The company, which operated more than 20 venues across the UK, posted a loss of £749,000 for the year to end March 2024, reversing a profit of just under £2m the previous year. The sharp hikes to employers' National Insurance Contributions introduced in April and reduced relief on business rates have contributed to the challenges faced by the industry.

According to Kate Nicholls, chair of UK Hospitality, half of London's hospitality businesses are operating at or below break-even, up from a third since the Budget. She stated that the money coming through the front door is not enough to cover costs, resulting in businesses running out of road and being "taxed out."

In response to the financial difficulties, Simmons has announced plans to close at least four sites, including a London venue in Putney. The decision to exit four leases was taken to focus resources on stronger performing venues. However, the BBPA's estimation of pub closures in the UK is more than one per day on average, with 378 pubs expected to close this year across England, Wales, and Scotland, amounting to more than 5,600 job losses.

Simmons has appointed advisory firm Kroll to oversee the administration. Despite this, no specific public information is available about the new administrator of Simmons or what they have achieved so far. Founder Nick Campbell has remained silent on the matter of the company's financing, stating it was "incredibly disrespectful" to ask employees about the state of the business.

However, Campbell did mention that the additional investment secured by Simmons will be used to support future expansion and operational improvements across the company's estate. The costs of doing business - rent, rates, employment - are much higher in London, but footfall and visitor numbers have not yet recovered to pre-Covid levels.

This news serves as a stark reminder of the challenges facing the hospitality industry in the wake of the pandemic and the subsequent economic downturn. As businesses continue to struggle, it is hoped that further support and investment will be made available to help them navigate these difficult times.

London's cocktail establishment Simmons files for administration, leading to multiple venue shutdowns