Bistrot Pierre sold out of pre-pack administration with 158 job losses

French restaurant group Bistrot Pierre has been bought out of pre-pack administration in a move that will save almost 400 jobs.

Cherry Equity Partners, a new investment platform led by hospitality executive Ed Strandring, has acquired part of the business.

It ensures ten Bistrot Pierre restaurants around the country will continue to trade, safeguarding 394 jobs.

However, eight restaurants will close immediately, with 158 redundancies.

Administrators Interpath Advisory said they would be providing support to those impacted "as a matter of priority".

The sites set to close include restaurants in Birmingham, Mere Green, Newport, Kidderminster, Southport, Preston, Leamington Spa and Coventry.

Bistrot Pierre was last sold out of pre-pack administration in 2020 and has struggled to return to profitability since the pandemic.

It posted a pre-tax loss of £2.5m in the year ended 30 June 2023 while turnover dropped to £24.4m, down from £28.4m the previous year, according to filings on Companies House.

Nick White, chief executive of Bistrot Pierre, said planned increases around National Insurance and the National Minimum Wage in April meant it was impossible for some of the chain’s smaller sites to keep trading.

White added: “We are delighted to have secured the future of the business and, with the backing of Cherry Equity Partners, now have a strong platform in place for future growth.

“At the same time, we are tremendously sad to see eight of our sites close. The impending increases in National Minimum Wage and National Insurance contributions will add hundreds of thousands of pounds to our costs, making our smaller locations simply unviable.

“We’d like to express our sincere thanks to our teams that have worked so hard to serve the fantastic customers that have visited these locations over the years.”

The deal comes two months after Cherry Equity Partners, which is supported by an international family office, backed the management buyout of the Cabana Latin American restaurant chain.

Ed Standring, chief executive of Cherry Equity Partners, said: “Bistrot Pierre is a well-loved Bistrot, bar and boutique rooms business with a great heritage, and we’re looking forward to working with Nick and the team to invest and grow the business.”

The transaction was led by Will Wright and Dom Pannozzo at Interpath.