Corbin & King enters administration

April 2022 | DEALFRONT | BANKRUPTCY & CORPORATE RESTRUCTURING

Financier Worldwide Magazine

April 2022 Issue

Corbin & King Limited, the company behind high-end London restaurants, has entered into administration.

Minor International Public Company Limited (MINT), which owns a 74 percent stake in Corbin & King, said it hired administrators – specialist business advisory firm FRP Advisory – after it “was unable to meet its financial obligations”. Geoff Rowley and Ian Corfield, partners at FRP, have been appointed as joint administrators.

Corbin & King Limited is the holding company for the Corbin & King Group, which operates a number of London’s leading restaurants, including The Wolseley, Brasserie Zédel and The Delaunay. The appointment of administrators will not affect the operations of the restaurants within the group, which continue to trade.

Corbin & King, like much of the hospitality industry, was hit particularly hard by the coronavirus (COVID-19) pandemic and enforced closures during lockdown. Subsequently, the sector has had to contend with rising operational costs and fluctuating consumer confidence, which have also severely hampered operations.

However, despite the challenges faced by Corbin & King, the company’s administration comes during an escalating disagreement over financing and future strategy between the company’s founders, Chris Corbin and Jeremy King, and MINT. MINT claimed it had provided the company with £38m in loans and loan guarantees, which have been in default since May 2020. MINT accused the company of defaulting on its obligations and said it required strong financial support.

The move to appoint administrators from FRP comes just days after Corbin & King attempted to file a motion in the high court to try to prevent MINT from calling in its loan, which would have pushed the company into insolvency.

“After all our offers to put the company on a strong financial standing have been rejected by Mr King, we have had no choice but to take the responsible step and put Corbin & King Limited into administration,” said Dillip Rajakarier, group chief executive of MINT. “The loans have been in default since May 2020 and we are required to act in the best interest of the company’s stakeholders. Contrary to the picture that Mr King is trying to paint, the business is insolvent and is in strong need of further financial support. Minor is prepared to offer this support to secure the long-term future of Corbin & King’s employees and restaurants.”

Mr King claimed there was “absolutely no need to go into administration”. He said the company was “trading extremely well” and continuing to pay its suppliers and staff. He accused MINT of making a “power play” for the group’s holding company, and stated his intention to buy the company out of administration.

Administrators at FRP said they are now considering all possible options for the business. “Corbin & King Group is one of the most well-established restaurant groups in the UK, but even they have not been immune to the challenges that continue to face the hospitality sector as a result of the pandemic,” said Mr Rowley.

MINT is heavily invested both in the UK and globally as an owner, operator and a joint venture partner of a portfolio of more than 3300 restaurants. In addition to the collection of restaurants under the Corbin & King portfolio, its investments include the Patara brand of high-end Thai restaurants, Benihana, an entertaining Japanese steakhouse dining experience, respected brands such as Zuma, Trader Vics, several Michelin-star restaurants across Europe, and NH and nhow hotels in London.

While the dispute with MINT has rumbled on, Corbin & King has been suing its insurer AXA for around £4.5m in a dispute that hinges in part on the scope of ‘denial of access’ cover, designed to protect insured venues that are shut by public authorities on health grounds. The case is just one of several lawsuits where insurance companies are being sued for denying thousands of companies business interruption payouts during the pandemic.

Richard Summerfield