Lavval Restaurants, the group behind Spaghetti House, appointed corporate finance specialist BTG as administrators last week.
Italian chain Spaghetti House has shut all its restaurants after its parent firm tumbled into administration.
The historic London hospitality brand has made all 101 staff redundant as a result, with bosses blaming higher costs and “difficult” conditions in the face of “global instability”.
Lavval Restaurants, the group behind Spaghetti House, appointed corporate finance specialist BTG as administrators last week.
Administrators were hired to help wind down the business and have since shut its remaining five sites, all based in central London.
It is understood the company had already shut three sites in recent months, based in Mayfair, Goodge Street and Fitzrovia.
Spaghetti House was founded by Simone Lavarini in 1955 and remained owned by the family.
The group’s Knightsbridge branch was in the media spotlight in 1975 when three robbers took the restaurant’s staff hostage following a failed robbery.
Luigi Lavarini, executive chairman and chief executive of Lavval Restaurants, said: “After 70 years of serving our loyal customers, it is with a heavy heart that we announce Lavval Restaurants Limited has entered administration and will cease trading.
“Years of increasing costs from the pandemic, Brexit, Government budgets and global instability have created difficult market conditions for hospitality.
“Balancing these costs with reduced demand and spending from customers as they navigate the rising cost of living has proven too challenging.
“Despite best efforts and seeking professional advice, we have had to make this difficult but necessary decision to wind down our business.”
Asher Miller, partner at BTG, said: “After a number of years of challenging market conditions worsened by soaring operational, employment, energy and tax costs affecting the hospitality industry, the directors of Lavval Restaurants approached BTG for advice on their available options.
“Unfortunately, despite their best efforts, the directors made the difficult decision to enter administration and appoint us to manage the controlled wind down of the business.”
