...By Henry George for TDPel Media.
Mamma Dough, a restaurant chain, entered administration just before Christmas in 2022, citing escalating costs, energy bills, a cost-of-living crisis, and train strikes as reasons for their financial struggles.
However, Begbies Traynor, the administrators for the chain, have recently sold five Mamma Dough restaurants to London Dough Co, which is a newly formed company owned by the directors of Balham’s Exhibit Bar.
The sale will enable 47 of the chain’s employees to keep their jobs, but two sites in Tooting and Whitechapel are set to close.
Sale of Five Mamma Dough Restaurants
Begbies Traynor has successfully secured the sale of five Mamma Dough restaurants, including those in Brixton, Peckham, Ladywell, Sydenham, and South Norwood, to a newly formed company called London Dough Co, owned by Balham’s Exhibit Bar directors.
The sale will retain 47 jobs in the chain.
Closure of Two Mamma Dough Restaurants
Although the sale of five Mamma Dough restaurants is a positive outcome for the chain, the two remaining restaurants in Tooting and Whitechapel will not be included in the sale and are set to close.
The administrators have said that some employees from these locations have been transferred to other sites.
Positive Outcome for Mamma Dough Employees
Stephen Katz of Begbies Traynor, one of the administrators for Mamma Dough, has expressed his delight in securing a positive outcome for the majority of the chain’s employees.
He said, “We are delighted to have successfully secured a positive outcome for the majority of the staff at Mamma Dough and to enable this previously growing business to continue to operate following one of the toughest periods to be a consumer-facing business.”
Analysis and Commentary
The sale of the five Mamma Dough restaurants to London Dough Co is a positive outcome for the majority of the chain’s employees, as it will enable 47 of them to keep their jobs.
However, the closure of the two remaining restaurants in Tooting and Whitechapel is a significant loss for the chain, as it reduces its overall size and presence.
It is not uncommon for restaurants and businesses to struggle financially due to escalating costs and a difficult economic climate.
The impact of the Covid-19 pandemic and the cost-of-living crisis has hit many businesses hard, especially those in the hospitality sector, which rely heavily on footfall and consumer spend.
The fact that some Mamma Dough employees have been redeployed to other sites is a positive sign that there may be opportunities for them to continue working within the chain or elsewhere in the industry.
Overall, the sale of the five Mamma Dough restaurants to London Dough Co is a positive outcome for the chain and its employees, and it will be interesting to see how the new owners operate and grow the business in the future.