Friday, July 3, 2009

Ramsay's own kitchen nightmare

Profits at Gordon Ramsay's UK restaurants fell by 87% in the last year, forcing the chef to inject £3.5m of his own money into the business. His father-in-law and partner Chris Hutcheson also pumped in £1.5m to help cope with mounting debts and tax bills.

The latest accounts showed that in 2007-08 pre-tax profits plummeted £3.05m to £383,325. At the same time, net debt soared from £4.06m to £9.48m.

The closure of two of Ramsay's London restaurants alone accounted for a £9.5m drop in revenue. The Savoy Grill was shut because of refurbishment of its host hotel, while the Connaught's lease expired. A third venue, La Noisette, ceased trading in January this year, and was said to have been a "consistently underperforming site".

Ramsay has told how he had to sell his Ferrari to help raise funds, blaming the company's problems on his own over-ambition. Some 25 staff also lost their jobs as part of the restructuring efforts.

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