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Tootsies enters administration

9:52am GMT, Tuesday, 13 October 2009

Giraffe has agreed to buy 11 of the 21 Tootsies restaurants after the eatery entered administration. Giraffe has agreed to buy 11 of the 21 Tootsies restaurants after the eatery entered administration.

Restaurant chain Tootsies has been placed into administration, according to its owners, Clapham House Group PLC.

The Group, which also owns eateries Gourmet Burger Kitchen and The Real Greek, released a statement to announce that BDO LLP had been appointed administrators of Tootsies, which has suffered a “prolonged downturn in trading and profitability.” The Board of Clapham House Group said there was “little prospect in the Tootsies business as a whole generating a profit in the near future.”

The Group confirmed its remaining two business are unaffected by this latest development, and will continue to operate as normal.

“We have taken steps described in this announcement with great regret, having spent considerable time researching alternative strategic options for Tootsies. We believe that this is the best course of action to protect shareholder value whilst minimising job losses,” said Dave Page, Chairman of the Clapham House Group.

The administrators, BDO LLP, said that following its appointment it had already found a buyer for 11 of the 21 Tootsies restaurants. Giraffe Concepts, the family friendly restaurant chain has paid around £2.5 million for the units, which will save 25 full-time and 250 part-time jobs. BDO are continuing to find a buyer for the remaining restaurants.

Giraffe Chairman, Luke Johnson, commented on the purchase: “This is a deal that will transform Giraffe and it shows how ambitious we are for the business.”

Mr Page continued: “Looking to the future the management team will focus on building the excellent reputation and strength of its two core brands, Gourmet Burger Kitchen and The Real Greek.”

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