Bistrot Pierre’s Pre-Pack Rescue: A Lifeline for Some, a Loss for Others

Bistrot Pierre, the well-known French restaurant chain, has been thrown a lifeline after being bought out of pre-pack administration, securing the future of ten locations and preserving 394 jobs. However, the restructuring has come at a cost, with eight restaurants closing immediately, leading to 158 redundancies.

Photo courtesy of Bistrot Pierre

The acquisition has been led by Cherry Equity Partners, a newly established investment platform spearheaded by hospitality executive Ed Standring. The firm’s intervention marks its second high-profile acquisition in recent months, following its backing of the Cabana Latin American restaurant chain’s management buyout.

The rescued sites will continue trading under their new ownership, while those in Birmingham, Mere Green, Newport, Kidderminster, Southport, Preston, Leamington Spa, and Coventry will shut their doors permanently.

Economic Pressures and Taxation Blamed for Closures

Despite its efforts to remain profitable, Bistrot Pierre has struggled since the pandemic. The chain had previously been sold out of pre-pack administration in 2020, and its latest financial records show a pre-tax loss of £2.5 million for the year ending 30 June 2023. Turnover declined to £24.4 million from £28.4 million the previous year.

Nick White, Chief Executive of Bistrot Pierre, pointed to increasing operational costs, particularly the impending rises in the National Minimum Wage and National Insurance, as key factors behind the decision to close several locations.

“We are delighted to have secured the future of the business and, with the backing of Cherry Equity Partners, now have a strong platform in place for future growth,” White stated. “At the same time, we are tremendously sad to see eight of our sites close. The impending increases in National Minimum Wage and National Insurance contributions will add hundreds of thousands of pounds to our costs, making our smaller locations simply unviable.”

White also expressed gratitude to the teams that had worked at the affected restaurants, acknowledging their hard work and dedication over the years.

A New Chapter Under Cherry Equity Partners

The deal represents a significant step for Cherry Equity Partners, which aims to reinvigorate Bistrot Pierre under its new ownership. CEO Ed Standring reaffirmed his confidence in the brand’s future, describing it as a “well-loved Bistrot, bar, and boutique rooms business with a great heritage.”

“This investment marks our second acquisition in as many months and underscores our deep commitment to the UK hospitality sector – an industry we’re incredibly passionate about and one we believe is full of opportunity,” Standring said.

Photo courtesy of Bistrot Pierre

The transaction was managed by administrators Interpath Advisory, with UK CEO Will Wright expressing optimism about the chain’s future. “We’re pleased to have been able to secure this transaction, which will ensure this popular brand continues to feature on high streets around the country.”

The Future of Mid-Market Dining

Bistrot Pierre’s restructuring underscores the ongoing challenges facing mid-market dining in the UK. Rising operational costs, fluctuating consumer spending, and increased taxation continue to put pressure on businesses, forcing many to reassess their financial viability.

As Cherry Equity Partners takes the reins, all eyes will be on whether their investment can breathe new life into Bistrot Pierre and steer it towards long-term stability. For now, while some locations have been saved, the closures highlight the fragile state of the hospitality industry and the tough decisions businesses must make to survive.