Burger brand Hub Box bought out of administration
With pressure on cash flow increasing, the directors sought to explore their investment options, including a sale of the business
South-West based burger chain Hub Box has been bought out of administration and sold to South West Restaurants Limited for an undisclosed sum.
The transaction will see all of Hub Box’s 10 restaurants across the South West of England continue to trade, with all of the company’s circa 300 staff transferring to the purchaser as part of the deal.
Despite seeing consistent revenue growth over the past three years, the company had recently been impacted by rising food, energy, interest and labour costs.
With pressure on cash flow increasing, the directors sought to explore their investment options, including a sale of the business. However, when a solvent solution could not be found, they took steps to seek the appointment of administrators.
Consequently, Steve Absolom and Will Wright from Interpath Advisory were appointed joint administrators to Hub Box Limited on 11 July 2024 to explore investment options that could support its continued operations and its future expansion.
Immediately following their appointment, the joint administrators sold the business and assets of the company to South West Restaurants Limited.
Sam Birchall, head of special situations at Interpath Advisory who led the transaction, said: “Hub Box has grown a loyal customer base in the South West but, like many other casual dining operators, has been hit hard in recent years by high cost inflation.
“We’re pleased to have secured this transaction which safeguards the future of the brand and which, importantly, preserves employment for 300 staff. We wish all at the company the best for the future.”