The sandwich chain Benjys has plunged deeper into the red, calling into question its ambitious plans to extend its franchise model.The poor results for the year to March 2005 were filed at Companies House as it emerged that at least four franchisees had closed for business within the past six months.
Pre-tax losses have widened from £1.98m to £5.09m on turnover up 7pc to £33m. More worryingly, net debt at the company had increased by £5m to £25.9m.
The company was founded by the Benjamin family in Islington, north London and was taken over by current chief executive Ian Rickwood and his wife Emma, the marketing director, in 2000. They were backed by venture capital group ECI.
At the time the company had 32 sites, mostly in London, which Mr Rickwood has since expanded to 70 across the South and into the Midlands. He has talked about a target of 250 stores.
However, some franchisees have started to voice concerns that the business model is not sustainable. Yesterday, administrators Cooper Parry confirmed it had taken instruction from a fourth franchisee that had ceased trading.
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