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Ramsay 'used own cash to avoid administration'

Published on 3 Jul 2009 under category: legal

Gordon Ramsay was left close to bankruptcy after the money earned through his restaurants fell last year, latest figures suggest.

The TV personality and celerity chef's latest set of accounts show an 87 per cent dip in profits, which he blames on the rapid expansion of his food empire.

According to the figures, turnover fell by 14 per cent, to £35.57 million, while business net debt shot up to £9.48 million.

Meanwhile, the profits of his restaurants dropped from £3.05 million to £383,325, leaving him having to use cash earned through books, television work and live appearances to avoid the threat of administration.

He revealed that the figures represent a classic example of a "business in the growth phase", bankruptcy solicitors may be interested to hear.

Mr Ramsay said: "The group was expanding at such a rate that it was sucking up cash to get restaurants off the launch pad."

Elsewhere, fragrance firm Crabtree & Evelyn has this week filed for Chapter 11 bankruptcy protection.