The business, which is owned by Lavval Group, entered administration earlier this year closing all its sites.
Asher Miller and Stephen Katz of Begbies Traynor were appointed administrators on 6 May. Two formal offers were received, but both were subject to reaching agreement with the brand owner on licensing the brand for a period of continued trade. It was then concluded that directors had no option other than to file for insolvency.
The Spaghetti House on Argyll Street was bought by US-based sandwich chain Jersey Mike’s – which is looking for its first two sites in London – for a £575,000 premium, with the sale completed on 19 May.
A second Spaghetti House in Street Kensington was bought by Sang Saka for a £105,000 premium, with the sale completed on 18 June.
Founded in 1955, Spaghetti House was one of the UK’s oldest restaurant groups and celebrated its 70th birthday last year.
The company blamed ‘years of increasing costs from the pandemic, Brexit, Government budgets and global instability’ for the closure, with Luigi Lavarini, executive chairman and CEO of Lavval Restaurants, saying at the time: “Balancing these costs with reduced demand and spending from customers as they navigate the rising cost of living has proven too challenging.”
