Watchdog criticises “unacceptable” conduct of directors who sought Audi and Lamborghini leases

Two directors behind a pair of Brazilian steakhouses in North Yorkshire have been banned from running companies after attempting to lease luxury cars while their business was heavily in debt, according to findings released by the Insolvency Service.

Dale Laverick, 41, and Alessandro Da Silva, 42, who operated Caramba Steakhouse in Selby and York through their company K and L Restaurants Ltd, allowed the business to continue trading for more than a year after it had become insolvent. Over that period, the company’s liabilities increased by more than £180,000.  

By mid-2022, K and L Restaurants owed £17,080 to HMRC. Debt collectors had also been appointed to recover £76,788 in unpaid rent and service charges relating to the York site, as well as £46,744 in outstanding business rates. The York restaurant had opened only months earlier, in autumn 2021.  

Despite the deteriorating financial position, both directors pushed ahead with attempts to lease several high-end vehicles, including Land Rovers, an Audi and a Lamborghini. Although the Audi was returned and the Lamborghini lease was cancelled before the vehicle was delivered, the company still paid £20,440 in lease costs between September and December 2022.  

This spending took place while the business was unable to meet its tax, rent and rates obligations. Earlier, the pair’s first company, Caramba Steakhouse Ltd, had gone into liquidation in October 2020 owing nearly £100,000 in tax. Its assets were transferred to K and L Restaurants Ltd before the first company’s liquidation.  

Rob Clarke, chief investigator at the Insolvency Service, criticised the directors for prioritising their personal interests. He said both men “knew their company was insolvent but waited more than a year before seeking proper insolvency advice”, during which time creditors were left unpaid and the company’s debts grew significantly.  

The watchdog also noted that both directors had attempted twice to dissolve the company while money remained owed to creditors.  

The directors finally sought external professional advice in June 2023. Two days later the business ceased trading and entered liquidation the following month. They have now been disqualified from acting as company directors for five years.

The case highlights the increasing scrutiny faced by hospitality operators during a period of financial strain for many restaurants, especially those expanding rapidly or carrying forward legacy debts. Rising operating costs, including rent and business rates, have placed pressure on businesses already managing tight margins.

For creditors, particularly landlords and suppliers, the incident reinforces concerns about directors who allow struggling businesses to keep trading beyond the point of insolvency. For operators, it serves as a reminder of the legal obligation to seek timely professional advice when a company’s financial position deteriorates.

Industry analysts note that insolvency actions are becoming more visible as the sector grapples with economic uncertainty, fluctuating footfall and persistent cost pressures. The Insolvency Service has indicated that it intends to maintain a firm stance on cases where personal benefit is prioritised over responsible management.