Lussmanns closes two restaurants in pre-pack administration

Luke Johnson-backed Lussmanns has undergone a pre-pack administration and closed two of its seven restaurants in the aftermath of the past two Budgets.

 

Founder Andrei Lussmann said the downturn in the economy and the upturn in costs created challenging trading conditions that had resulted in the closure of his Highgate and Berkhamsted restaurants, the latter of which was launched in 2021.

 

He admitted the Highgate site “simply didn’t work” in a “very depressed” market that was “compounded by the impact of last autumn’s Budget and the uncertainty leading up to last week’s Budget”.

 

All staff at the two closed restaurants have been offered roles across the remaining Lussmanns sites.

 

Lussmann said: “It’s with a heavy heart that we’ve had to close these two restaurants.

 

“Make no mistake, it is tough running restaurants right now. Our remaining five restaurants remain profitable and we’ll re-double our focus on ensuring St Albans, Harpenden, Hertford, Hitchin and Woburn continue to be the locals’ favourite sustainable restaurant as they have been for many years.”

 

He added: “The restructure has put the company on a much firmer footing to combat the challenges the sector continues to face, ready to grow again when the opportunity arises.

 

“It’s in our DNA to do our very best to look after both our creditors and our colleagues, and that’s exactly what we’re trying to do.”

 

The independent restaurant group was founded in 2002 by managing director Lussmann, formerly of Pizza Express, Fish Diner and and Corney & Barrow. 

 

He opened his first café in London’s Ladbroke Grove in 2002 and his debut fish and grill restaurant in Hertford in 2004, where the majority of the business is now based.  

 

The brand is a founding member of the Sustainable Restaurant Association (SRA) and claims to be the only UK restaurant group with a menu that is 100% Marine Stewardship Council (MSC) certified.

 

At its peak, Lussmans operated seven restaurants, five of which were in Hertfordshire across Hertford, St Albans, Hitchin, Harpenden, and Berkhamsted.

 

In 2024, the group expanded into Woburn, Bedfordshire and Highgate, north London.  

 

Many operators have expressed frustration towards the 2025 Budget, citing concerns over the rise in business rates and National Living Wage. 

 

A press announcement said serial hospitality investor and former Pizza Express chairman Johnson “remains at the heart of the business”.

 

His firm Risk Capital Partners continues to back the likes of Tortilla and the Light cinemas. He is also a minority owner of fast-growing bakery chain Gail’s.

 

The parent company of Lussmanns will now be known as JL25 Restaurants Ltd.