The group has closed its restaurants in Highgate and Berkhamsted as a result of what founder and managing director Andrei Lussmann described as a combination of the downturn in the economy and the uptick in costs had made trading very challenging.
All staff at both restaurants have been offered roles in the rest of the business, whose parent company will now be known as JL25 Restaurants.
“It’s with a heavy heart that we’ve had to close these two restaurants,” he says.
“Make no mistake, it is tough running restaurants right now. Our remaining five restaurants remain profitable and we’ll re-double our focus on ensuring St Albans, Harpenden, Hertford, Hitchin and Woburn continue to be the locals’ favourite sustainable restaurant as they have been for many years.”
Lussman says that the Highgate restaurant “simply didn’t work” and that the costs associated with opening and operating it in a market that quickly became very depressed meant the business couldn’t move ahead with any other plans.
“This was compounded by the impact of last autumn’s Budget and the uncertainty leading up to last week’s Budget,” he adds.
“The restructure has put the company on a much firmer footing to combat the challenges the sector continues to face, ready to grow again when the opportunity arises.
“It’s in our DNA to do our very best to look after both our creditors and our colleagues, and that’s exactly what we’re trying to do.”